Office Depot Soars on Q3 Earnings Results
Office Depot (NYSE: ODP) reported better than expected third quarter earnings prior to the opening bell on Tuesday, sending the stock up sharply during the trading session. In the last hour of trade, the stock was up nearly 18 percent to $2.95. The small-cap name has been volatile throughout 2012, but has now registered a gain of nearly 38 percent. Nevertheless, ODP remains well off of its 52-week highs of $3.81.
The company reported a third-quarter net loss of $69.57 million or $0.25 per share, compared to net earnings of $91.66 million or $0.28 per share, in the year ago period.
On an adjusted basis, which is comparable to analysts' consensus, Office Depot reported net earnings of $18 million or $0.06 per share. This was well ahead of Wall Street analysts' consensus EPS estimates of $0.01.
Revenue in the quarter was $2.69 billion, which was a decline versus the year ago period when Office Depot reported revenue of $2.84 billion. This missed Wall Street revenue estimates of $2.73 billion.
The jump in the stock is likely related to pessimism surrounding the company. While ODP beat earnings estimates easily, its revenues came in below expectations. The company has been struggling for years, however, and the better than expected earnings results appear to have sparked some optimism in the name.
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