Shares of Office Depot jumped on Tuesday after the company reported better-than-expected earnings per share and revenue for its second quarter.
Shares closed up 13.5 percent at $2.86 per share after the Boca Raton, Florida-based retailer reported adjusted earnings of 5 cents a share, beating analysts’ average estimate of 4 cents a share. Office Depot also reported $2.63 billion of revenue for the quarter, beating the estimate of $2.58 billion and 5 percent higher than the same quarter last year.
“I am extremely pleased with our performance in the second quarter as the execution of our strategy is driving improved sales trends across all three of our operating divisions,” said Gerry Smith, Office Depot’s CEO. “Sales in the Business Solutions Division were up an impressive 4 percent in the quarter driven by our acquisition strategy and growth in the adjacency categories beyond office products.”
“I’m also encouraged by the early success of our initiatives to increase services, which now represent 16 percent of total sales,” Smith said. “In addition to the sales performance, our efficiency and cost control initiatives allowed us to deliver an increase in year-over-year operating income and cash flow for the Company in the quarter.”
Office Depot said in its second-quarter press release that it has had free cash flow of $177 million since the start of 2018 and repurchased approximately 3 million shares, totaling $8 million, in its second quarter.
On Monday, the company announced the naming of Timothy J. Perrott to vice president of investor relations.
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Offers quit for the day percent at $2.86 per share after the Boca Raton, Florida-based retailer revealed balanced profit of 5 pennies an offer, beating examiners’ normal gauge of 4 pennies an offer. Office Depot likewise revealed $2.63 billion of income for the quarter, beating the gauge of $2.58 billion and 5 percent higher than a similar quarter a year ago.
“I am to a great degree satisfied with our execution in the second quarter as the execution of our methodology is driving enhanced deals drifts over each of the three of our working divisions,” said Gerry Smith, Office Depot’s CEO. “Deals in the Business Solutions Division were up a noteworthy 4 percent in the quarter driven by our procurement system and development in the contiguousness classifications past office items.”
“I’m likewise energized by the early accomplishment of our drives to build administrations, which presently speak to 16 percent of aggregate deals,” Smith said. “Notwithstanding the business execution, our proficiency and cost control activities enabled us to convey an expansion in year-over-year working wage and income for the Company in the quarter.”