Office Depot reverses loss in 1Q but misses estimates and shares fall hard

Office Depot 1Q reverses loss, shares tumble

BOCA RATON, Fla. — Shares of Office Depot tumbled 17 percent in heavy trading Tuesday after the company fell just shy of Wall Street predictions.

The company earned nearly $20 million, or 7 cents a share, in the three-month period ending March 27. Last year during the same period, the company lost $54.7 million, or 20 cents a share.

Analysts had expects earnings per share of 8 cents on revenue of $3.14 billion.

The company has been undergoing a restructuring as it deals with weak sales in the U.S., brought on by the recession.

The North American retail business’ sales fell 6 percent to $1.3 billion, mostly on the closing of 120 stores last year due to the restructuring.

Sales at stores open at least a year fell 1 percent in the quarter. That’s considered a key measure of retailer health because it measures growth at existing stores rather than new ones.

Sales in the unit that caters to businesses in North America tumbled 9 percent to $831 million in the quarter, with fewer customers spending dropping.

International sales rose 2 percent to $894 million, though fell 5 percent in local currency.

Shares of Office Depot Inc. slid $1.55 to $7.40 in midday trading.