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Sep 30, 2023
ODP Q3 2023 Earnings Report
ODP Corporation's Q3 2023 performance reflected solid operating results driven by a low-cost business model and disciplined capital allocation.
Key Takeaways
The ODP Corporation reported Q3 2023 revenue of $2 billion with GAAP EPS of $1.79 and adjusted EPS of $1.88. GAAP operating income was $91 million and net income was $70 million. The company repurchased $32 million of shares during the quarter.
Total sales were $2.0 billion, down 8% year-over-year, primarily due to lower sales in the Office Depot consumer division.
GAAP operating income was $91 million and net income from continuing operations was $70 million, or $1.79 per diluted share.
Adjusted operating income was $95 million, flat compared to the third quarter of 2022; adjusted EBITDA was $125 million.
The company repurchased 659 thousand shares at a cost of $32 million in the third quarter of 2023.
Forward Guidance
The company updated its full year guidance for 2023, anticipating a challenging macroeconomic environment for the remainder of the year.
Positive Outlook
- Adjusted EBITDA is affirmed at $400 - $430 million.
- Adjusted Operating Income is revised to $280 - $310 million (previous: $270 - $300 million).
- Adjusted Earnings per Share is revised to $5.30 - $5.60 per share (previous: $5.00 - $5.30 per share).
- Adjusted Free Cash Flow is affirmed at $200 - $230 million.
- Capital Expenditures is affirmed at $100 - $120 million.
Challenges Ahead
- Sales are revised to $7.8 - $7.9 billion (previous: Approximately $8 billion).
- Weaker macroeconomic conditions have impacted the level of consumer and business activity creating top-line headwinds.
- Guidance assumes a consistent overall macroeconomic environment.
- The exact amount of charges or credits are not currently determinable but may be significant.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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