Office Depot is soaring after beating on earnings

Office Depot shares gained by as much as 14% in trading on Wednesday after the company reported earnings results.

In the statement, CEO Roland Smith said the office-supplies retailer was “recovering quickly from the disruption” that the failed merger with Staples caused. In May, a federal judge blocked their $6 billion merger on anti-trust concerns, promting the companies to call off the deal.

However, the company said the foiled deal is one reason why sales in the fourth-quarter sales will be lower than expected. Store closures and customer losses are also expected to weigh on its performance during the holiday season, the company said.

Meanwhile, Office Depot said it would sell its remaining international businesses and focus on North America.

For the third quarter, Office Depot reported adjusted earnings per share of $0.16, one cent above the consensus estimate on Bloomberg. Sales were lower than expected, totaling $2.84 billion ($3.49 billion estimated.)

Office Depot shares plunged nearly 40% after news of its halted merger in May. The stock is down 59% year-to-date.

NOW WATCH: Watch millennials try a McDonald’s Big Mac for the first time

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at