Boston, MA 02/26/2014 (wallstreetpr) – Office Depot Inc. (NYSE:ODP) shares slumped on Tuesday trading session by 9% after the company provided a disappointing outlook at the back of below-par fourth quarter and full year results. The company is currently facing increased headwinds in the industry that are expected to substantially affect its performance in the coming quarters.
The fourth quarter earnings were not impressive as they should have been with earnings per share coming in at $0.03 compared to consensus estimates of $0.06.
Office Depot Inc. (NYSE:ODP) is currently implementing an integration plan after merging last year November, with OfficeMax something that seems to have derailed its performance in the fourth quarter. The company claims it has put its house in order in terms of leadership and that people should expect comprehensive reorganization as of the end of the month.
Office Depot financial result
Office Depot Inc. (NYSE:ODP) full year sales came in at $11.2 billion an increase of 5% compared to sales recorded in F2012, sales for the fourth quarter grew by 33% to come in at $3.5 billion. The fourth quarter and full year results included operations from its partner company OfficeMax. The fourth quarter was mired by an operating loss of $118 million compared to a net income of $5 million registered for the same period a year ago
Full year saw Office Depot post an operating loss amounting to $205 million that was a massive increment compared to a net loss of $31 million in F2012.
F2014 Outlook
Office Depot Inc. (NYSE:ODP) reports the company expects to record reduced sales for the current fiscal year compared to F2013 as a result of challenging market trends across product lines and distribution channels. The company projects net operating income for the full year to come in at $140 million.
Office Depot Inc. (NYSE:ODP) was down in Tuesday active trading session going down by 8.79% to close the day at $4.88
