Office Depot Inc (NASDAQ: ODP) rose Thursday after reporting better-than-expected quarterly earnings.
Figures released Thursday morning showed that total reported sales for the third quarter of 2017 were $2.6 billion compared to $2.8 billion in the third quarter of 2016, a decrease of 8%.
A news release reported that third-quarter sales took in the negative impact on both the Retail and Business Solutions Divisions from hurricanes Harvey, Irma and Maria, which disrupted operations in Puerto Rico and the southeastern United States where a heavy concentration of customers are located.
In the third quarter of 2017, Office Depot reported operating income of $108 million, net income from continuing operations of $98 million, or $0.19 per diluted share and total company net income of $92 million, or $0.17 per diluted share.
Both net income from continuing operations and total company net income include a net tax credit of approximately $37 million associated with the reduction of the U.S. tax valuation allowance.
In the third quarter of 2016, the company reported operating income of $117 million, net income from continuing operations of $330 million, or $0.61 per diluted share and total company net income of $193 million, or $0.35 per diluted share.
Moreover, Office Depot announced the completion of the CompuCom Systems, Inc. acquisition, which prompted CEO Gerry Smith to say, "the first step in this transformation was the strategic acquisition of CompuCom, which adds award-winning, enterprise managed workplace services capabilities to our portfolio."
Within minutes of Thursday's closing bell, the shares leaped 19 cents, or 6.3%, to $3.20.
