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Mar 30, 2024
ODP Q1 2024 Earnings Report
ODP reported first quarter 2024 results with revenue of $1.9 billion and GAAP EPS of $0.40.
Key Takeaways
The ODP Corporation reported a decrease in sales by 11% to $1.9 billion compared to the prior year. GAAP EPS was $0.40 and adjusted EPS was $1.05. The company is accelerating Project Core to maximize cost savings and remains on track to meet 2024 guidance despite macroeconomic challenges.
Total reported sales were $1.9 billion, an 11% decrease compared to the prior year, primarily due to lower sales in the Office Depot and ODP Business Solutions divisions.
GAAP operating income was $18 million, and net income from continuing operations was $15 million, or $0.40 per diluted share.
Adjusted operating income was $51 million, with adjusted EBITDA at $82 million.
The company repurchased 957 thousand shares at a cost of $50 million in Q1 2024 and approximately $90 million of shares year-to-date.
Revenue by Segment
Forward Guidance
The Company is updating its full year guidance for 2024. They are increasing Adjusted EBITDA to $430 million - $450 million and Adjusted Operating Income to $320 million - $340 million. Adjusted Earnings per Share are expected to be $6.30 - $6.60 per share.
Positive Outlook
- Stabilization of macroeconomic and business conditions is assumed.
- Continued store footprint consolidation and improving overall omni-channel trends at Office Depot are expected.
- Growth at ODP Business Solutions in the second half of the year is anticipated.
- Continued expansion at Veyer is projected.
- Acceleration of Project Core is expected to drive cost savings.
Challenges Ahead
- Macroeconomic and general business conditions posed challenges in the quarter and are expected to persist in the near term.
- Higher interest expense associated with projected ABL borrowings is anticipated.
- A more normalized tax rate for the balance of the year is expected.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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