ODP Earnings Prediction
The chart below shows how ODP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ODP sees a +9.80% change in stock price 10 days leading up to the earnings, and a -0.02% change 10 days following the report. On the earnings day itself, the stock moves by -6.51%. This data can give you a slight idea of what to expect for the next quarter's release.
ODP Key Earning Data
ODP Earnings Analysis
Positive
B2B Transformation Progress: The ODP Corporation is making significant progress in its B2B transformation, which is expected to unlock sustainable growth and long-term success.
Strategic Hospitality Partnership: The company has secured a landmark agreement with a leading hospitality management company, marking a pivotal step into the $16 billion hospitality supply industry.
Supply Chain Competitive Advantage: ODP's supply chain and distribution capabilities are recognized as key competitive advantages, enabling the company to expand into new and growing industry segments.
B2B Growth Strategy: The company has launched the Optimize for Growth restructuring plan, aimed at accelerating revenue growth in the B2B sector while reducing reliance on retail operations.
New B2B Contract Success: Despite facing challenges, ODP has secured large and profitable new B2B contracts, including the largest enterprise contract in its history valued at up to $1.5 billion over 10 years.
Supply Chain Revenue Surge: The Supply Chain Business has seen impressive growth, with third-party revenue up 150% compared to the previous year, indicating strong demand for its services.
Future Performance Outlook: The company is optimistic about its long-term trajectory, expecting stabilization and improvement in topline performance for ODP Business Solutions in future quarters.
Negative
Revenue Decline Analysis: Total revenue decreased by 10% in Q4 2024 compared to the previous year, primarily due to lower sales in the retail business and reduced consumer traffic.
Operating Income Decline: GAAP operating income fell to $20 million in Q4 2024 from $52 million in the prior year, reflecting significant challenges in the retail segment.
Net Income Decline: Adjusted net income from continuing operations dropped to $20 million or $0.66 per diluted share, down from $43 million or $1.13 per diluted share in the previous year.
Decline in Operating Cash Flow: Operating cash flow from continuing operations decreased to $34 million in Q4 2024, down from $71 million in the same period last year, indicating a decline in cash generation capabilities.
Revenue Decline Challenges: ODP Business Solutions faced a challenging year with revenue down 9% in Q4 2024, influenced by high inflation, corporate layoffs, and reduced enterprise spending.
Revenue Decline Analysis: Office Depot's revenue for Q4 2024 was $784 million, a 13% decline due to fewer stores in service and lower consumer demand, with comparable store sales down 8%.
Asset Impairment Charges: The company recorded $12 million in charges related to non-cash asset impairments, indicating financial strain in managing retail locations.
Sales Decline Analysis: The overall company sales for the year were $7 billion, down from $7.8 billion in the prior year, reflecting ongoing struggles in both retail and B2B segments.
ODP FAQs
How does ODP typically perform around its earnings report dates?
ODP's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +9.80% change leading up to the report and a -0.02% change in the 10 days following the release.
Is ODP Corp (ODP) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
ODP Earning Call Sentiment
The ODP Corporation (ODP) Q4 2024 Earnings Call Transcript
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