NASDAQ$ODP

The ODP Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

ODP Corporation's third quarter results were announced, with revenue of $1.8 billion and GAAP EPS of $2.04.

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.

Headline financials

Total Revenue

$1.78B

Previous: $2.01B-11.4%
EPS (adj)

$0.71

Previous: $1.88-62.2%
Capital Expenditures

-$22M

Previous: -$25M+12.0%
Free Cash Flow

$58M

Previous: $86M-32.6%
Net Income

$68M

Previous: $70M-2.9%
Operating Income

$102M

Previous: $91M+12.1%
Gross Profit

$364M

Previous: $474M-23.2%
Stock-Based Comp

$3M

Previous: $10M-70.0%

Revenue & EPS history

ODP · Revenue · Quarterly

$1.78B

Q3 2024-11.4%vs Q3 2023
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 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.

Tailwinds

  • 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

Headwinds

  • Deteriorating macroeconomic conditions
  • Challenging competitive landscape
  • Severe weather conditions
  • Performance to date in 2024 has clearly been below expectations
  • Adjusted Free Cash Flow Suspends

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 2024

Historical avgQ3 2024

+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