Office Depot (ODP, $2.88) posts disappointing outlook on Q1 revenue
Office Depot’s estimate for its first quarter revenue and operating income falls short of analysts’ expectations.
The office supplies company anticipates its quarterly revenue to come in at $2.76 billion, which is lower than the $2.82 billion level analysts were expecting. The company attributed the disappointing performance to CompuComp’s disappointing results. Office Depot acquired the IT firm for $1 billion in 2017.
The company expects adjusted operating income to be about $65 million for the quarter. That includes a -$15 million operating loss from CompuCom, something that Office Depot blames on lower-than-expected revenue from existing customer projects. The company indicated that it is working on improving the situation by reorganizing its customer-facing organization and realigning the sales team to identify new opportunities.
According to Office Depot, its business solutions division faced headwinds from paper and paper-related cost increases. Paper costs have increased more than 20% during the year, and that could not be completely passed through to customers, according to the company. It promises to have begun initiatives to cushion the impact of such cost increases.
ODP in upward trend: 10-day moving average moved above 50-day moving average on October 09, 2024
The 10-day moving average for ODP crossed bullishly above the 50-day moving average on October 09, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 30, 2024. You may want to consider a long position or call options on ODP as a result. In of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
ODP moved above its 50-day moving average on October 07, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ODP advanced for three days, in of 294 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 212 cases where ODP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 67 cases where ODP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ODP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ODP broke above its upper Bollinger Band on October 28, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ODP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.745) is normal, around the industry mean (12.064). P/E Ratio (14.991) is within average values for comparable stocks, (36.044). Projected Growth (PEG Ratio) (0.661) is also within normal values, averaging (2.650). ODP has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.034). P/S Ratio (0.268) is also within normal values, averaging (18.679).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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a provider of office products, services and solutions
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