NASDAQ$ODP

The ODP Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Delivered strong operating results and cash flow during the first quarter and the onset of the global pandemic.

Office Depot announced strong Q1 2020 results, with operating income up 233% YOY and net income up 463% YOY. The company's B2B focus and ability to serve customers during the COVID-19 crisis helped drive strong operating results and generate $188 million in operating cash flow. Due to the uncertainty of the severity and duration of the impacts of the COVID-19 outbreak, the Company is withdrawing its previously issued guidance for 2020.

  • Total Reported Sales of $2.7 Billion, down 2% from Prior Year Period
  • Operating Income of $80 Million, up 233% YOY; Net Income of $45 Million, up 463% YOY
  • Adjusted Operating Income of $108 Million, up 61% YOY; Adjusted EBITDA of $157 Million, up 33% YOY
  • EPS of $0.08, up $0.07 from Prior Year Period; Adjusted EPS of $0.12, up $0.05 from Prior Year Period

Headline financials

Total Revenue

$2.73B

Previous: $2.77B-1.6%
EPS (adj)

$1.20

Previous: $0.70+71.4%
Adjusted EBITDA

$157M

Previous: $118M+33.1%
Capital Expenditures

$25M

Previous: $46M-45.7%
Free Cash Flow

$163M

Previous: $14M+1064.3%
Net Income

$45M

Previous: $8M+462.5%
Operating Income

$80M

Previous: $24M+233.3%
Gross Profit

$629M

Previous: $641M-1.9%
Cash & Equivalents

$842M

Previous: $604M+39.4%
Total Assets

$6.45B

Previous: $7.47B-13.6%
Stock-Based Comp

$7M

Previous: $8M-12.5%

Revenue & EPS history

ODP · Revenue · Quarterly

$2.73B

Q1 2020-1.6%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

ODP · $1.1B total across 2 segments · Q4 2022

  • Office Depot Division
    $1.09B
  • Veyer Division
    $10M

Forward guidance

Withdrawing 2020 guidance due to COVID-19 pandemic.

Tailwinds

  • Implementing several strategies to address and hopefully mitigate these challenges including utilizing our global sourcing capabilities to secure additional sources of essential products and supplies, including PPE
  • Providing technology support
  • Facilitating work from home and virtual learning environments
  • Continuing efforts to drive a low cost business model
  • Strong balance sheet and available liquidity position

Headwinds

  • Recent supply constraints for essential products
  • Operational disruptions occurring in businesses throughout North America
  • Expect to experience lower revenue in the near term
  • Uncertainty related to the full impact of the COVID-19 pandemic
  • Temporarily suspending share buybacks and dividends

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

+0.1%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-1.4%

Avg return

30 days after

48%

32 / 67 earnings

Positive

+27.8%

Q3 2014

Best reaction

-31.0%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+0.1%+0.2%+0.6%
Q2 2025+9.3%+3.6%+26.4%
Q1 2025+1.0%+40.0%+30.1%
Q4 2024-21.7%-24.9%-24.7%
Q3 2024-10.9%-13.6%-16.6%
Q2 2024-31.0%-31.8%-25.6%
Q1 2024-16.8%-19.5%-25.8%
Q4 2023+6.6%+1.2%+0.1%
Q3 2023-7.0%-1.3%-1.1%
Q2 2023+5.8%+0.2%-0.5%
Q1 2023-0.2%+0.7%+4.3%
Q4 2022+13.5%+7.8%-0.6%
Q3 2022+1.2%+2.8%+21.1%
Q2 2022+0.5%+2.2%-2.4%
Q1 2022+3.8%-2.0%-14.0%
Q4 2021+3.7%+2.4%+6.9%
Q3 2021-1.3%
Q2 2021-4.9%
Q1 2021+4.7%
Q4 2020-12.9%
Q3 2020+15.4%
Q2 2020-10.6%
Q1 2020+8.6%
Q4 2019-3.0%
Q3 2019+16.0%
Q2 2019-5.1%
Q1 2019-6.7%
Q4 2018+6.1%
Q3 2018+22.5%
Q2 2018+20.2%
Q1 2018-3.0%
Q4 2017-16.9%
Q3 2017+8.6%
Q2 2017-27.2%
Q1 2017+1.6%
Q4 2016+15.6%
Q3 2016+17.4%
Q2 2016+6.7%
Q1 2016-1.3%
Q4 2015-3.4%
Q3 2015+0.4%
Q2 2015-0.8%
Q1 2015-2.0%
Q4 2014-1.1%
Q3 2014+27.8%
Q2 2014-3.3%
Q1 2014+19.9%
Q4 2013-6.7%
Q3 2013-6.5%
Q2 2013+1.4%
Q1 2013+1.1%
Q4 2012-20.7%
Q3 2012+14.7%
Q2 2012-6.3%
Q1 2012-12.2%
Q4 2010+9.3%
Q4 2011+9.3%
Q3 2011-8.7%
Q2 2011+8.5%
Q1 2010+8.2%
Q1 2011-2.9%
Q4 2008+0.0%
Q3 2010-1.5%
Q3 2009-1.5%
Q4 2009-8.0%
Q2 2009-8.0%
Q2 2010-8.0%

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