NASDAQ$ODP

The ODP Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

ODP's Q2 2021 results were announced, showing a 6% year-over-year increase in revenue driven by an improving business environment and a low-cost model.

The ODP Corporation reported a 6% increase in total reported sales, reaching $2.3 billion compared to the same quarter last year. Adjusted operating income increased to $44 million, and adjusted EBITDA rose to $93 million. The company is advancing its digital platform business and plans for the separation into two independent publicly-traded companies.

  • Total reported sales increased by 6% year-over-year to $2.3 billion.
  • GAAP operating loss was $(78) million, which included $122 million in charges.
  • Adjusted operating income increased from $10 million to $44 million.
  • The company repurchased shares under a previously announced stock repurchase authorization.

Headline financials

Total Revenue

$2.29B

Previous: $2.16B+5.9%
EPS (adj)

$0.51

Previous: -$0.07+828.6%
Adjusted EBITDA

$93M

No prior period
Capital Expenditures

$17M

Previous: $15M+13.3%
Free Cash Flow

-$27M

Previous: -$23M-17.4%
Net Income

-$88M

Previous: -$439M+80.0%
Operating Income

-$78M

Previous: -$456M+82.9%
Gross Profit

$472M

Previous: $416M+13.5%
Cash & Equivalents

$691M

Previous: $762M-9.3%
Total Assets

$5.38B

Previous: $5.87B-8.3%
Stock-Based Comp

$10M

Previous: $9M+11.1%

Revenue & EPS history

ODP · Revenue · Quarterly

$2.29B

Q2 2021+5.9%vs Q2 2020
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

The company is moving forward with plans to separate ODP into two, highly-focused, pure-play companies, expecting completion by the first half of 2022.

Tailwinds

  • The separation is expected to allow ODP and Office Depot to pursue unique market opportunities and growth strategies.
  • The separation will improve value for shareholders and stakeholders.
  • The companies will share commercial agreements to continue to leverage scale benefits.
  • The improving market dynamics continue to reflect the growth opportunities for both businesses.
  • The company remains on-track with its initiatives to complete this transformation.

Headwinds

  • There is a risk that the Company will not be able to achieve its strategic plans, including the proposed separation of its consumer business and the planned sale of CompuCom.
  • The high costs in connection with these transactions may not be recouped if these transactions are not consummated.
  • Failure to execute effective advertising efforts and maintain the Company’s reputation and brand at a high level.
  • Disruptions in computer systems, including delivery of technology services.
  • Breach of information technology systems affecting reputation, business partner and customer relationships and operations and resulting in high costs and lost revenue.

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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro