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Office Depot Turns To Profit In Q4, Sees 2020 Sales Above View; Stock Up

Office Depot Inc. (ODP), a provider of business services and supplies, products and technology solutions to small, medium and enterprise businesses, reported that its fourth-quarter net income was $55 million or $0.10 per share, compared to a net loss of $14 million or $0.02 per share in the fourth quarter of 2018.

In Wednesday pre-market trade, ODP is trading at $2.50, up $0.13 or 5.49 percent.

For fiscal year 2020, the company projects sales to be about $10.50 billion. Analysts expect revenues of $10.46 billion for the fiscal year.

Quarterly adjusted net income from continuing operations was $68 million or $0.12 per share, compared to an adjusted net income from continuing operations of $52 million, or $0.09 per share in the fourth quarter of 2018.

Adjusted operating income was $92 million compared to adjusted operating income of $84 million in the fourth quarter of 2018. The primary driver of this improved performance was stronger operating results in all three divisions driven by the Business Acceleration Program -related cost efficiency efforts.

Total reported sales for the fourth quarter were $2.51 billion, a decrease of 6% from last year's $2.67 billion. Analysts expected revenues of $2.62 billion for the quarter. The decrease in revenue was primarily the result of lower sales in the Retail Division, driven by lower same store sales and fewer retail stores, combined with lower sales in the CompuCom Division and Business Solutions Division.

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