NASDAQ$ODP

The ODP Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

ODP's third quarter performance was announced, featuring revenue of $2.2 billion and GAAP EPS of $1.36.

The ODP Corporation reported flat sales of $2.2 billion compared to the prior year. GAAP EPS was $1.36 and adjusted EPS was $1.48. The company's B2B distribution division, ODP Business Solutions, experienced growth, offsetting lower sales in the consumer division.

  • Total reported sales were $2.2 billion, flat versus the prior year.
  • GAAP operating income was $84 million and net income from continuing operations was $67 million, or $1.36 per diluted share.
  • Adjusted operating income was $95 million, compared to $122 million in the third quarter of 2021; adjusted EBITDA was $131 million, compared to $162 million in the third quarter of 2021.
  • Operating cash flow from continuing operations was $163 million and adjusted free cash flow was $160 million.

Headline financials

Total Revenue

$2.17B

Previous: $2.18B-0.3%
EPS (adj)

$1.48

Previous: $1.76-15.9%
Adjusted EBITDA

$131M

Previous: $162M-19.1%
Adjusted Free Cash Flow

$160M

Previous: $123M+30.1%
Capital Expenditures

$25M

Previous: $18M+38.9%
Free Cash Flow

$138M

Previous: $102M+35.3%
Net Income

$67M

Previous: $73M-8.2%
Operating Income

$84M

Previous: $104M-19.2%
Gross Profit

$486M

Previous: $504M-3.6%
Cash & Equivalents

$473M

Previous: $753M-37.2%
Total Assets

$4.42B

Previous: $5.35B-17.4%
Stock-Based Comp

$12M

Previous: $6M+100.0%

Revenue & EPS history

ODP · Revenue · Quarterly

$2.17B

Q3 2022-0.3%vs Q3 2021
Beat estimate in 8 of 16 quarters(50%)
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 reconfirmed their outlook for the balance of the fiscal year and announced a new $1 billion share repurchase authorization, available through year end 2025.

Tailwinds

  • The company's realigned four business unit structure creates a compelling value proposition for all of its stakeholders.
  • The company is focused on providing value for shareholders.
  • The company has numerous opportunities to pursue long-term profitable growth.
  • The company has a disciplined capital plan.
  • The company's growth objectives are enabled through its realigned four business unit structure.

Historical earnings impact

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

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+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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