Office Depot, Inc.
) 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
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
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.
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.
), Earnings ESP of +5.56% and a Zacks Rank #1 (Strong Buy)
J&J Snack Foods Corp.
), Earnings ESP of +9.84% and a Zacks Rank #2 (Buy)
), Earnings ESP of +14.29% and a Zacks Rank #3 (Hold).
AMAZON.COM INC (AMZN): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
OFFICE DEPOT (ODP): Free Stock Analysis
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