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Office Depot reported weaker-than-expected first-quarter profit and revenue

Office Depot Inc., in the midst of regulatory pushback over its tie-up with rival Staples Inc., reported weaker-than-expected first-quarter profit and revenue amid uncertainty surrounding the proposed marriage.

The company reported sales declines across its segments, including its business-solutions division, and the company blamed its performance on the regulatory fight.

In all for the quarter, Office Depot earned $46 million, compared with $45 million a year ago. On a per-share basis, earnings remained flat at 8 cents. Excluding items, earnings were 10 cents a share. Revenue slipped to 9% to $3.54 billion.

Analysts surveyed by Thomson Reuters had projected per-share earnings of 12 cents on revenue of $3.62 billion.

For the latest period, revenue at Office Depot's North American retail segment, its largest line of business by sales, slipped 8.9% to $1.51 billion.

Sales in North American business solutions unit slipped 7%, in part on "customer attrition and lower customer additions, primarily because of the substantial business disruption related to the pending acquisition by Staples," the company said.

Revenue in the international division slipped 10%, hurt by foreign exchange volatility. On constant-currency basis, the decline was less pronounced at 6%, due to market pressures and the pending Staples acquisition.

What is your target-price for the company's stock in long-term?