NASDAQ$ODP

The ODP Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced fourth quarter and full year 2022 results, delivering full-year results consistent with previously issued guidance range.

The ODP Corporation reported Q4 2022 revenue of $2.1 billion, a 3% increase year-over-year. GAAP EPS was $0.76, and adjusted EPS was $0.85. The company repurchased $197 million of shares in the fourth quarter and provided 2023 guidance.

  • Total reported sales of $2.1 billion, up 3% versus the prior year, primarily as a result of higher sales in our B2B distribution division, ODP Business Solutions, offsetting lower sales in our consumer division, Office Depot.
  • GAAP operating income of $55 million and net income from continuing operations of $36 million, or $0.76 per diluted share, versus $31 million and $32 million, or $0.61 per diluted share, respectively in the prior year.
  • Adjusted operating income of $58 million, compared to $47 million in the fourth quarter of 2021; adjusted EBITDA of $89 million, compared to $87 million in the fourth quarter of 2021
  • Operating cash flow from continuing operations of $158 million and adjusted free cash flow of $147 million, versus $88 million and $80 million, respectively in the prior year

Headline financials

Total Revenue

$2.11B

Previous: $2.04B+3.1%
EPS (adj)

$0.85

Previous: $0.71+19.7%
Total Available Liquidity

$1.3B

No prior period
Capital Expenditures

$31M

Previous: $26M+19.2%
Free Cash Flow

$127M

Previous: $62M+104.8%
Net Income

$36M

Previous: $32M+12.5%
Operating Income

$55M

Previous: $31M+77.4%
Gross Profit

$446M

Previous: $432M+3.2%
Cash & Equivalents

$403M

Previous: $514M-21.6%
Total Assets

$4.15B

Previous: $4.87B-14.7%
Stock-Based Comp

$9M

Previous: $12M-25.0%

Revenue & EPS history

ODP · Revenue · Quarterly

$2.11B

Q4 2022+3.1%vs Q4 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 provided full year guidance for 2023. Sales: $8.0 - $8.4 billion, Adjusted EBITDA: $400 - $430 million, Adjusted Operating Income: $270 - $300 million, Adjusted Earnings per Share: $4.50 - $5.10 per share, Adjusted Free Cash Flow: $200 - $230 million, Capital Expenditures: $100 - $120 million

Tailwinds

  • Numerous opportunities to pursue long-term profitable growth.
  • Focused on prudently deploying capital to maximize shareholder value.
  • Creating a compelling value proposition for all stakeholders.
  • Cautiously optimistic regarding the evolving macroeconomic conditions.
  • Laser focused on executing upon our four business unit strategy and continuing our commitment to our low-cost model approach.

Headwinds

  • Some consumer weakness during the fourth quarter.
  • Continue to see near-term challenges ahead.
  • Cautious on the state of the overall economy.
  • Macroeconomic conditions that could further impact consumers and small businesses.
  • Potential discrete (tax) items that may affect quarter to quarter fluctuations.

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 Q4 2022

Historical avgQ4 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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