Office Depot, Inc.
), the supplier of a range of office products and services, is
slated to report its first-quarter 2014 results on May 6, 2014.
In the last quarter, the company formed by the merger of Office
Depot and OfficeMax posted a negative surprise of 200%. Let's see
how things are shaping up for this announcement.
Factors this Past Quarter
The soft industry trends weighed upon Office Depot's
fourth-quarter 2013 performance. Demand for office products
(paper-based) has been declining due to the latest technological
advancements. Smartphones, tablets and laptops are fast emerging
as viable substitutes for paper-based office supplies. Moreover,
there has been persistent weakness in the office products sector
due to decline in business and consumer spending.
Our proven model does not conclusively show that Office Depot
is likely to beat earnings estimates this quarter. This is
because a stock needs to have both a positive
and a Zacks Rank #1, #2 or #3 for this to happen. This is not the
case here, as you will see below.
ESP for Office Depot is 0.00%. This is because both the Most
Accurate Estimate and the Zacks Consensus Estimate stands at 3
Zacks Rank #3 (Hold):
Office Depot's Zacks Rank #3 when combined with a 0.00% ESP makes
surprise prediction difficult. We caution against stocks with a
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:
) has an Earnings ESP of +2.70% and a Zacks Rank #1 (Strong
Wynn Resorts Ltd
) has an Earnings ESP of +2.87% and a Zacks Rank #2 (Buy).
) has an Earnings ESP of +1.19% and a Zacks Rank #3 (Hold).
OFFICE DEPOT (ODP): Free Stock Analysis
TIME WARNER INC (TWX): Free Stock Analysis
UNIT CORP (UNT): Free Stock Analysis Report
WYNN RESRTS LTD (WYNN): Free Stock Analysis
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