Will Office Depot's Earnings Beat? - Analyst Blog
29 Aprile 2013 - 12:40PM
Zacks
Office Depot, Inc.
(ODP) is slated to report its first-quarter 2013 results on Apr 30,
2013. In the last quarter, it posted a negative surprise of 66.7%.
Let’s see how things are shaping up for this announcement.
Growth Factors this
Past Quarter
Office Depot’s disappointing
bottom-line performance was due to lower revenues that muted the
company’s cost containment efforts. After declining 5% in the third
quarter, Office Depot’s total revenue fell 11.7% in the fourth
quarter. Business budget remains tight, consumers remain more
cautious than ever before and companies are trying hard to navigate
through the challenging environment. Consumers and small businesses
remain frugal about big-ticket spending on items such as business
machines and other durable products.
Earnings
Whispers?
Our proven model does not
conclusively show that Office Depot is likely to beat earnings this
quarter. This is because a stock needs to have both a positive
Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a
Zacks Rank #1, #2 or #3 for this to happen. This is not the case
here as you will see below.
Zacks ESP: ESP for
Office Depot is -60.00%. This is because the Most Accurate Estimate
stands at 2 cents, while the Zacks Consensus Estimate is pegged at
5 cents.
Zacks Rank #5 (Strong
Sell): Office Depot’s Zacks Rank #5 (Strong Sell) lowers
the predictive power of ESP because the Zacks Rank #5 when combined
with a negative ESP makes surprise prediction difficult. We caution
against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going
into the earnings announcement, especially when the company is
seeing negative estimate revisions momentum.
Stocks that Warrant a
Look
Here are some other companies you
may want to consider as our model shows they have the right
combination of elements to post an earnings beat this quarter:
Hertz Global Holdings,
Inc. (HTZ), Earnings ESP of +5.56% and a Zacks Rank #1
(Strong Buy)
J&J Snack Foods
Corp. (JJSF), Earnings ESP of +9.84% and a Zacks Rank #2
(Buy)
Amazon.com Inc.
(AMZN), Earnings ESP of +14.29% and a Zacks Rank #3 (Hold).
AMAZON.COM INC (AMZN): Free Stock Analysis Report
HERTZ GLBL HLDG (HTZ): Free Stock Analysis Report
J&J SNACK FOODS (JJSF): Free Stock Analysis Report
OFFICE DEPOT (ODP): Free Stock Analysis Report
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