NEW YORK (TheStreet) -- Office Depot (ODP) shares are down 0.64% to $9.32 in early market trading on Tuesday after the office supply retailer reported its first quarter earnings results before the opening bell today.
The Boca Raton, FL-based company swung to a first quarter profit of $45 million, after reporting a net loss in the year ago period, or 13 cents per diluted share, in line with analysts' expectations for the period.
Revenue for the period fell 11% year over year to $3.88 billion, missing analysts' $4.1 billion expectations. Office Depot expects the fall in revenue to be a theme throughout the year as it continues its restructuring plan by closing stores across the country in anticipation of its pending merger with Staples (SPLS).
TheStreet Ratings team rates OFFICE DEPOT INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate OFFICE DEPOT INC (ODP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins."