Investors Don't Signal Feelings About Office Depot Q2 Earnings

Office Depot ODP reported the results of their second quarter this morning, moving shares little in the premarket. EPS came in at a ten cent loss as expected while revenue was 2.4 billion for a 1.23 percent miss.

CEO Neil Austrian had this to say: “Sales continue to be impacted by a sluggish technology category, particularly laptops, as well as ongoing budgetary pressure on our federal accounts... we remain actively engaged in integration planning related to the proposed merger with OfficeMax, which we continue to expect to close by the end of the year.”

The company’s cost reduction efforts paid off with operating expenses down 39 million, or 8.9 percent while sales fell just 3.7 percent. Cost of goods sold was also slightly reduced as a percentage of sales.

Related: Office Depot Issues Letter, Says Deal On Track for a Successful Closing by Year End

Same store sales in North America were down four percent with three percent smaller orders and one percent less transactions. Similarly, international sales fell three percent.

The company did a make a note about the upcoming merger with OfficeMax OMX, giving a timeline and stating: “The merger is not final until the receipt of certain regulatory approvals and completion of other customary closing conditions.”

Shares closed at $4.27 Monday, down almost five percent.