Office Depot shares up 6.2% in Wednesday trading

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Office Depot tops profit expectations, but comes up shy on sales

Shares of Office Depot Inc. edged up 0.3% in premarket trade Wednesday, after the office supplies retailer beat fourth-quarter profit expectations but came up shy on sales. The company swung to a net loss of $52 million, or 10 cents a share, from a profit of $80 million, or 15 cents a share, in the same period a year ago. The results included a loss of $48 million from recent tax legislation. Excluding non-recurring items, adjusted earnings per share came to 8 cents, above the FactSet consensus of 7 cents. Revenue fell to $2.58 billion from $2.73 billion, just shy of the FactSet consensus of $2.61 billion. Retail division sales fell 15% to $1.16 billion, while same-store sales declined 4%. Looking ahead, in which the company expects lower store volume, adjusted EPS is expected to be about 30 cents, below the FactSet consensus of 51 cents, and revenue is projected to be about $10.6 billion, which is below expectations of $10.8 billion. Thes tock has lost 11.3% over the past three months, while the SPDR S&P Retail ETF has gained 5.4% and the S&P 500 has tacked on 4.5%.

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