Office Depot Inc. posted fourth-quarter profit that exceeded analysts’ estimates as the office supply retailer prepares to be bought by competitor Staples Inc.
Earnings excluding some items were 7 cents a share, the Boca Raton, Florida-based company said Tuesday in a statement. The average of 17 estimates compiled by Bloomberg was 4 cents. Sales were $3.83 billion, compared with the $3.91 billion that analysts projected.
Office Depot agreed on Feb. 4 to be acquired by larger rival Staples in a $6.3 billion deal that would leave a single major office supply chain. The transaction still faces scrutiny by the US Federal Trade Commission, though regulators have been increasingly willing to approve retail mergers as e-commerce competition expands.
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Office Depot said it expects total sales to be lower this year, mainly because of its decision to close some stores, currency effects and challenging market conditions.
Office Depot shares gained 10 percent this year through Monday in New York, including a 22 percent surge the day the Staples deal was announced.