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 downward trend: price dove below 50-day moving average on June 05, 2023
ODP moved below its 50-day moving average on June 05, 2023 date and that indicates a change from an upward trend to a downward trend. In of 49 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 50-day moving average for ODP moved below the 200-day moving average on May 24, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 June 02, 2023. 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 Aroon Indicator for ODP entered a downward trend on May 09, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 02, 2023. You may want to consider a long position or call options on ODP as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ODP just turned positive on June 02, 2023. Looking at past instances where ODP's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ODP advanced for three days, in of 282 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to average 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 SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable 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 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 (1.427) is normal, around the industry mean (13.260). P/E Ratio (10.030) is within average values for comparable stocks, (24.930). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.485). ODP has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.038). P/S Ratio (0.236) is also within normal values, averaging (69.752).
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of office products, services and solutions
Industry SpecialtyStores
ODP and
Correlation & Price change
A.I.dvisor indicates that over the last year, ODP has been loosely correlated with HVT. These tickers have moved in lockstep 46% of the time. This A.I.-generated data suggests there is some statistical probability that if ODP jumps, then HVT could also see price increases.
