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Sep 28, 2024
ODP Q3 2024 Earnings Report
ODP Corporation's third quarter results were announced, with revenue of $1.8 billion and GAAP EPS of $2.04.
Key Takeaways
The ODP Corporation reported a decrease in sales by 11% compared to the previous year, with total sales of $1.8 billion. GAAP EPS was $2.04 and adjusted EPS was $0.71. The company is progressing on its B2B pivot, with significant new business wins, and completed the Varis sale subsequent to the quarter end. The company repurchased approximately $295 million of shares year to date.
Total reported sales were $1.8 billion, down 11% versus the prior year, primarily due to lower sales in the Office Depot and ODP Business Solutions Divisions.
GAAP operating income was $102 million, and net income from continuing operations was $68 million, or $2.04 per diluted share.
Adjusted operating income was $41 million, and adjusted EBITDA was $62 million.
Adjusted net income from continuing operations was $24 million, or adjusted diluted earnings per share from continuing operations of $0.71.
Revenue by Segment
Forward Guidance
The Company is amending its 2024 full-year guidance due to performance below expectations, impacted by deteriorating macroeconomic conditions and severe weather. However the company is fast-forwarding investments in resources necessary to pursue the new and exciting opportunities in our B2B and supply chain businesses.
Positive Outlook
- Sales Approximately $7 billion
- Adjusted EBITDA $260 million - $300 million
- Adjusted Operating Income $160 million - $200 million
- Adjusted Earnings per Share (fully diluted) $3.10 - $3.80 per share
Challenges Ahead
- Deteriorating macroeconomic conditions
- Challenging competitive landscape
- Severe weather conditions
- Performance to date in 2024 has clearly been below expectations
- Adjusted Free Cash Flow Suspends
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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