Office Depot (ODP) Q2 Earnings Top Estimates, Improve Y/Y
Zacks Investment Research | Aug 07, 2019 09:18PM ET
Office Depot, Inc.’s (NASDAQ:ODP) second-quarter 2019 results marked the fifth straight quarter of positive earnings surprise. Further, total sales marginally came ahead of the Zacks Consensus Estimate. Although the top line fell year over year, the bottom line increased from the year-ago period. The company registered healthy results across its Business Solutions Division and witnessed improved performance at CompuCom division on a sequential basis.
The company has undertaken initiatives such as strategic review of business operating model, growth prospects and cost structure to bring itself back on track. It is also concentrating on e-commerce platforms. Management is also making incremental investments to catapult it into a product and service-driven enterprise.
Office Depot initiated Business Acceleration Program that involves reducing costs, improving operational efficiencies, enhancing service delivery, effective use of technology and automation and identifying strategic investment opportunities. As a result, management continues to anticipate cost savings of at least $40 million in 2019 and attain more than $100 million in annual run-rate costs savings thereafter. Further, the company kept 2019 view intact.
We note that shares of this Zacks Rank #3 (Hold) company have tumbled roughly 16% in the past three months compared with the Zacks Investment Research
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