NASDAQ$ODP

The ODP Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

The ODP Corporation reported Q4 2023 results, marked by a decrease in sales but with a focus on cost-saving initiatives and shareholder returns.

The ODP Corporation reported a decrease in sales for Q4 2023, driven by lower performance in the Office Depot consumer division due to fewer retail locations and reduced traffic. The company is initiating 'Project Core' to streamline operations and enhance focus on core business, alongside a new $1 billion share repurchase authorization.

  • Total reported sales decreased by 14% to $1.8 billion, or 9% excluding the impact of the 53rd week in 2022.
  • GAAP operating loss was $31 million, including non-cash asset impairment charges of $68 million related to goodwill at Varis.
  • Adjusted net income from continuing operations was $35 million, with adjusted diluted earnings per share of $0.92.
  • The company repurchased 672 thousand shares at a cost of $32 million during the quarter.

Headline financials

Total Revenue

$1.81B

Previous: $2.11B-14.2%
EPS (adj)

$0.92

Previous: $0.85+8.2%
Total Available Liquidity

$1.1B

Previous: $1.3B-15.4%
Capital Expenditures

-$29M

Previous: $31M-193.5%
Net Income

-$37M

Previous: $36M-202.8%
Operating Income

-$31M

Previous: $55M-156.4%
Gross Profit

$396M

Previous: $446M-11.2%
Stock-Based Comp

$8M

Previous: $9M-11.1%

Revenue & EPS history

ODP · Revenue · Quarterly

$1.81B

Q4 2023-14.2%vs Q4 2022
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 2024, including a sales decline of 2% - 5%, Adjusted EBITDA of $410 million - $430 million, Adjusted Operating Income of $280 million - $300 million, Adjusted Earnings per Share of $5.60 - $5.80 per share and Adjusted Free Cash Flow greater than $200 million.

Tailwinds

  • Continued store footprint consolidation
  • Improving trends in eCommerce channel at Office Depot
  • Organic and inorganic growth at ODP Business Solutions
  • Continued expansion at Veyer
  • Progress at Varis

Headwinds

  • Continued macroeconomic conditions challenges
  • Cautious on the state of the overall US economy
  • Workforce employment concerns
  • Consumer spending concerns
  • International trade policies and agreements that could further impact the level of consumer and business activity

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 2023

Historical avgQ4 2023

+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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