Overview
ODP Q3 revenue falls 9% yr/yr, missing analyst expectations
Adjusted operating income beats estimates, despite revenue decline
Outlook
ODP will not provide forward-looking guidance due to pending merger with Atlas Holdings
ODP expects merger with Atlas Holdings to close by end of 2025
Result Drivers
RETAIL STORE CLOSURES - Sales decline in Office Depot Division driven by 63 fewer retail locations and reduced traffic
MACROECONOMIC CHALLENGES - ODP Business Solutions sales decline due to ongoing macroeconomic headwinds and softer enterprise demand
HOSPITALITY SECTOR GROWTH - ODP Business Solutions sees revenue trend improvement due to new customer onboarding and growth in hospitality sector
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $1.62 bln | $1.66 bln (3 Analysts) |
Q3 Adjusted EBITDA | Miss | $62 mln | $62.99 mln (3 Analysts) |
Q3 Adjusted Operating Income | Beat | $38 mln | $37.75 mln (3 Analysts) |
Q3 Adjusted EPS continuing operations | $1.14 | ||
Q3 Free Cash Flow | $78 mln | ||
Q3 Operating Income | $34 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."
Wall Street's median 12-month price target for ODP Corp is $35.00, about 20.6% above its November 4 closing price of $27.80
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 6 three months ago
Press Release: ID:nBwyCdg3a
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)