Office Depot Inc (NASDAQ:ODP) reported financial results for the fourth quarter that failed to stimulate investors. The results further depressed the sentiments, which were already hurt by a slowing economy in the economy. The company is also hoping that its acquisition by Staples, Inc. (NASDAQ:SPLS) would be decided by the Federal district court in May current year. There was also no doubt that the delay in acquisition has disrupted its financial numbers.
Focus On Driving Synergies
Office Depot Chairman and CEO, Roland Smith, said that the company has made considerable progress in implementing critical priorities last year. As a result, the company was able to realize its targeted incremental synergies from OfficeMax integration and topped its own estimates of operating income for the year 2015. He also made it clear that its focus would be on fueling synergies while stabilizing its top line and place the firm well on course to long-term growth prospects. For the current year, the company expects lower sales than the last year.
As far as the acquisition by Staples is concerned, the company indicated that it was going to present its case in court and expects resolution of the matter before May 10 in the current year. He firmly believed that the transaction would offer considerable gains to its shareholders, as well as, its customers.
Office Depot reported net income of $15 million or earnings of three cents a share compared to a loss of $84 million or a loss of 15 cents a share in the same quarter last year. On an adjusted basis, its net income was $39 million or seven cents a share versus $40 million or seven cents a share in the previous year’s quarter. This was four cents a share lower than the Street analysts’ expectations of 11 cents a share.
Office Depot’s top line fell 9% to $3.5 billion from $3.8 billion in the same quarter preceding year. It fell shy of the Street analysts’ predictions of $3.56 billion. Its retail division sales in North America witnessed a 9% drop due to the planned store closures. The company’s same-store sales were flat.