Office Depot beats by $0.01, reports revs in-line; reaffirms FY19 guidance (3.27 -0.03)
- Reports Q4 (Dec) earnings of $0.09 per share, excluding non-recurring items, $0.01 better than the S&P Capital IQ Consensus of $0.08; revenues rose 3.4% year/year to $2.67 bln vs the $2.68 bln S&P Capital IQ Consensus; adjusted EBITDA was $138 million flat with the prior year period, despite increased costs associated with additional investments in the B2B platform.
- 2019 Guidance: Co reaffirms guidance for FY19 revs of ~$11.1 bln vs. $11.05 bln S&P Capital IQ Consensus, Adjusted EBITDA of $~$575 mln, adj op income of$375 mln, FCF of ~$350 mln. "The actions we took in 2018 to regain sales growth and invest in our business platform showed progress and we are encouraged about the opportunities in 2019 to more fully exploit our key assets. These assets include our nearly 29 million customers; a distribution network that can deliver to 98.5% of the U.S. population next day; and our 1,800 person dedicated B2B sales force. In the year ahead, we are taking actions to improve profitability while continuing to grow our top-line revenue. In addition to leveraging the investments we've made in our business, the actions we are taking to drive greater profitability include realigning our merchandizing organization, pursuing cost efficiencies throughout the entire organization, leveraging our asset base in traditional and non-traditional ways, and enhancing customer penetration and share of wallet.