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Office Depot Q2 Net Loss Widens; Ups 2014 Adj. Operating Income Target

Office Depot Inc. (ODP: Quote), a provider of office products, services, and solutions, Tuesday reported a wider second-quarter net loss available to common stockholders of $190 million, or $0.36 per share, compared with a loss of $64 million, or $0.23 per share, last year.

On an adjusted basis, net loss available to common stockholders totaled $12 million, or $0.02 per share for the latest quarter. On average, 18 analysts polled by Thomson Reuters expected loss per share of $0.02 for the period. Analysts' estimates typically exclude one-time items.

For the quarter, non-GAAP operating income was $18 million, versus a combined pro forma adjusted operating loss of $6 million last year.

The firm clocked sales of $3.84 billion for the second quarter 2014, compared with $2.42 billion in the year-ago quarter, reflecting the inclusion of OfficeMax sales in 2014, and were 2% lower than combined pro forma sales of $3.9 billion in the prior year's second quarter. Analysts estimated revenues of $3.81 billion for the quarter.

For the rest of 2014, Office Depot still expects market trends to remain challenging across the company's product lines and distribution channels, and hence continues to project total company sales in 2014 to be lower than 2013 combined pro forma sales.

Based mainly on earlier than expected realization of cost synergies in the second quarter, the firm now sees adjusted operating income of not less than $200 million in 2014 compared with its prior outlook of not less than $160 million.

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by RTT Staff Writer

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