Office Depot Inc (NASDAQ:ODP) stock was nosediving today after reporting profits and revenue below estimates.
During the second quarter of 2017, Office Depot Inc reported earnings per share of 6 cents. This is the same as its earnings per share reported in the second quarter of 2016. However, it hurt ODP stock by coming in below Wall Street’s earnings per share estimate of 8 cents for the quarter.
Revenue of $2.36 billion for the second quarter of the year also didn’t help out ODP stock. The company’s revenue for the second quarter of the year is lower than the $2.58 billion that it reported the same time last year. It also wasn’t able to reach the $2.44 billion in revenue that analysts were looking for this quarter.
Office Depot Inc reported net income of $24 million during its second quarter of the year. This is a huge drop from its net income of $210 million reported during the same period of the year prior.
Operating income reported by Office Depot Inc in the second quarter of 2017 was $46 million. The office supplies company reported operating income of $271 million in the same quarter of the previous year.
Office Depot Inc says that it still expects sales for the full year of 2017 to come in below sales in 2016. The reason given by the company for the decline in sales are its recent efforts to close stores. The company also says that sales are being hampered by lost contracts from 2016 and a challenging market.
ODP stock was down 22% as of noon Wednesday, but is up 4% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.