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 +7.12% change in stock price 10 days leading up to the earnings, and a -0.82% change 10 days following the report. On the earnings day itself, the stock moves by -4.81%. This data can give you a slight idea of what to expect for the next quarter's release.
ODP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.78B
-11.40%
3.67%
Gross Margin
20.45%
-13.31%
2.66%
Operating Margin
2.30%
-51.37%
19.79%
Net Margin
3.82%
9.77%
-1760.87%
EPS
1.76
-1.68%
-184.21%
No Data Available
ODP Earnings Analysis
The ODP Corporation Common Stock Corporation (ODP.O) Earnings Conference Call
Positive
B2B Contract Acquisition: 1. Major B2B Contract Win: ODP secured a significant new B2B contract worth up to $1.5 billion over a 10-year period, marking one of the largest contracts in the company's history.
Robust Revenue Growth: 2. Strong Revenue Growth in Veyer: Veyer achieved a 30% increase in external revenue compared to last year, demonstrating robust growth in their supply chain business.
Strong Liquidity Position: 3. Solid Cash Position: The company ended the quarter with total liquidity of $728 million, including $192 million in cash and cash equivalents, ensuring a strong financial foundation.
Stock Repurchase Strategy: 4. Successful Capital Allocation: ODP repurchased over $100 million of its stock in Q3, totaling $295 million for the year-to-date, reflecting confidence in its long-term value.
Pipeline Opportunity Strengthening: 5. Positive Pipeline Trends: Daily sales trends have stabilized, and the company is seeing a stronger pipeline of opportunities, indicating potential for future revenue growth.
Negative
Revenue Decline Analysis: 1. Declining Revenue: Total revenue for Q3 2024 was $1.8 billion, down 11% compared to the same quarter last year, primarily due to lower sales in the Office Depot segment and a reduction of 53 stores in service.
Operating Income Decline: 2. Decreased Adjusted Operating Income: Adjusted operating income fell to $41 million in Q3 2024, a significant drop from $112 million in the same period last year, reflecting the impact of lower sales and operational challenges.
Decline in Adjusted EBITDA: 3. Lower Adjusted EBITDA: Adjusted EBITDA for the quarter was $62 million, down from $138 million in Q3 2023, indicating a decline in profitability amid challenging market conditions.
Decline in Free Cash Flow: 4. Reduced Free Cash Flow: Adjusted free cash flow decreased to $68 million in Q3 2024, compared to $102 million in the prior year, primarily due to lower sales and working capital timing issues.
2024 Guidance Revision: 5. Amended 2024 Guidance: The company lowered its adjusted EBITDA outlook for 2024 to a range of $260 million to $300 million, down from previous expectations, and suspended guidance for adjusted free cash flow due to ongoing investments in growth opportunities.
ODP FAQs
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ODP Earning Call Sentiment
The ODP Corporation (ODP) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ODP.O
-0.7%Positive
The earnings call summary indicates several negative factors: lowered revenue and EPS guidance, significant declines in revenue and EBITDA, and reduced share repurchases. The Q&A further highlights uncertainties, such as the impact of hurricanes and reluctance to provide specific guidance. Despite some positive elements like new deals and Project Core, the overall sentiment is negative, especially considering the lowered guidance and operational challenges. Given the company's market cap and the negative sentiment, the stock price is likely to fall by 2% to 8% over the next two weeks.
