Office Depot Inc
), one of the leading suppliers of office products and services
across the globe, recently said that it has been granted the office
supplies purchasing contract by the State of South Carolina. The
financial terms of this deal were undisclosed.
Management is quite confident on this deal and believes that
Office Depot can supply its office products on heavy discounts to
thousands of public agency purchasers within the State, which will
be accretive to its top line.
Office Depot has been retailing in the State of South Carolina
since 1989. The first store was opened in Greenville in the State.
The company currently runs 21 retail stores with about 450 workers
employed throughout the State. The company has been making
donations for the well-being of the State. Moreover, last year
Office Depot contributed around $40,000 in-kind to various
organizations and causes in the State.
Office Depot has been repositioning itself to keep afloat in a
difficult consumer environment. It is containing costs, closing
underperforming stores, reducing exposure to higher dollar-value
inventory items, shuttering non-critical distribution facilities,
and focusing on providing innovative products and services, in
order to improvise on its margins.
The company is expected to release its third-quarter 2012
financial results on Tuesday, October 30, 2012. The current Zacks
Estimate for earnings stands at 1 cent and revenue is pegged at
$2,731 million for the upcoming quarter.
Boca Raton, Florida based Office Depot supplies its services and
goods globally in about 1,680 retail stores and also runs an
e-commerce website. The market capitalization of the company is
about $673 million and it employs a total of 39,000 workers in 60
Currently, we have a long-term 'Neutral' recommendation on the
stock. Moreover, Office Depot, which competes with
), carries a Zacks #3 Rank that translates into a short-term Hold
rating for the next 1-3 months.
OFFICE DEPOT (ODP): Free Stock Analysis Report
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