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.
The Stochastic Oscillator for ODP moved into overbought territory on April 25, 2024. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
ODP moved below its 50-day moving average on April 24, 2024 date and that indicates a change from an upward trend to a 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 April 23, 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 Momentum Indicator moved above the 0 level on April 23, 2024. You may want to consider a long position or call options on ODP as a result. In of 97 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 April 23, 2024. Looking at past instances where ODP's MACD turned positive, the stock continued to rise in of 47 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 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 77, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ODP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably 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 (1.745) is normal, around the industry mean (12.709). P/E Ratio (14.991) is within average values for comparable stocks, (35.640). Projected Growth (PEG Ratio) (0.661) is also within normal values, averaging (2.536). ODP has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.033). P/S Ratio (0.268) is also within normal values, averaging (87.325).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of office products, services and solutions
Industry SpecialtyStores