Company Performance - ODP Corp. shares ended at $12.49, reflecting a -0.56% change from the previous close, underperforming the S&P 500, which lost 0.17% [1] - Over the past month, ODP Corp. has seen a significant decline of 20.86%, compared to a loss of 2.42% in the Retail-Wholesale sector and 3.94% in the S&P 500 [1] Upcoming Earnings - The upcoming EPS for ODP Corp. is projected at $0.65, indicating a 38.1% decrease from the same quarter last year [2] - Revenue is expected to be $1.65 billion, down 11.86% from the prior-year quarter [2] Full Year Estimates - For the full year, analysts expect earnings of $2.56 per share and revenue of $6.57 billion, representing declines of -22.42% and -5.99% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for ODP Corp. suggest a shifting business landscape, with upward revisions indicating positive sentiment towards the company's operations [4] - The Zacks Rank system, which incorporates these estimate changes, currently rates ODP Corp. as a 5 (Strong Sell) [6] Valuation Metrics - ODP Corp. has a Forward P/E ratio of 4.92, which is significantly lower than the industry average of 12.81 [6] - The company also has a PEG ratio of 0.35, compared to the Retail - Miscellaneous industry's average PEG ratio of 1.4 [7] Industry Ranking - The Retail - Miscellaneous industry, to which ODP Corp. belongs, ranks in the bottom 43% of all industries, with a Zacks Industry Rank of 142 [7][8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

CoreTrust has partnered with ODP Business Solutions to provide its 3,500+ members with greater savings on indirect spend through an expanded supplier network.NASHVILLE, Tenn., March 6, 2025 /PRNewswire/ -- CoreTrust, a leading group purchasing organization (GPO), has partnered with ODP Business Solutions, a leading supplier of workplace solutions and services and a division of The ODP Corporation (NASDAQ: ODP), to help its 3,500+ business members save even more on indirect spend. This new corporate services ...

Financial Performance - Consolidated sales decreased by $833 million, or 11%, in 2024 compared to 2023, with the ODP Business Solutions Division down 8% and the Office Depot Division down 14%[194]. - Total gross profit decreased by $316 million, or 18%, in 2024, with gross margin dropping from 23% in 2023 to 21% in 2024[197]. - Diluted earnings per share from continuing operations was $3.08 in 2024, down from $6.22 in 2023[197]. - The Office Depot Division's sales decreased by $526 million, or 14%, in 2024, primarily due to planned store closures and lower demand[207]. - The ODP Business Solutions Division's operating income fell by 36% to $112 million in 2024, impacted by lower sales and a decrease in gross margin[205]. - Cash provided by operating activities of continuing operations was $159 million in 2024, down from $360 million in 2023[199]. - The company recorded $47 million in merger, restructuring, and other operating expenses in 2024, compared to $4 million in 2023[197]. - The effective tax rate for 2024 was 27%, influenced by various tax benefits and adjustments[197]. Business Strategy and Restructuring - The company closed a total of 340 retail stores as part of the Maximize B2B Restructuring Plan, which aims to optimize costs and support business-to-business solutions[26]. - The Maximize B2B Restructuring Plan is expected to be completed by the end of 2024, focusing on cost savings and growth in the business-to-business platform[26]. - In 2024, the company announced organizational restructuring changes under Project Core aimed at enhancing operating results and increasing shareholder returns through cost improvement actions[68]. - The company re-aligned its business into three operating divisions in October 2024, following the sale of Varis, with a renewed focus on core office supplies and growth in these divisions[88]. Workforce and Employee Engagement - As of January 25, 2025, the company had approximately 19,000 full-time and part-time employees, a decrease from 20,000 the previous year due to planned store closures[31]. - The company’s employee engagement strategy includes multiple forums for feedback, which are used to improve workplace culture and employee satisfaction[34]. - The company’s 5C Culture, based on customer, commitment, change, caring, and creativity, drives exceptional performance across its operations[35]. - The potential for unionization has increased, with a recent election petition filed in May 2023, although employees voted against union representation[141]. Market and Competition - The company faces high competition in the office products market, with pressure on sales and margins due to increased price awareness among end-users[48]. - The company faces significant competition from various sectors, including office supply resellers, e-commerce platforms, and mass merchandisers, which may adversely impact financial performance[113]. - There is a notable shift in consumer behavior towards technology, resulting in decreased demand for traditional office supplies like paper and ink, necessitating growth in customer base and spending[114]. Supply Chain and Operations - The company has increasingly utilized global offerings to reduce product costs while maintaining quality, with a global sourcing office in Shenzhen, China, to manage product sourcing and logistics[41]. - The company operates 58 supply chain facilities in the continental United States and 10 in Canada as of December 28, 2024[167]. - The company holds trademark registrations and patents for various private branded products, enhancing its competitive position in the market[29]. - The company is dependent on key vendors for product availability and pricing, which could affect sales and customer satisfaction if disruptions occur[91]. Risks and Challenges - The company faces risks related to attracting and retaining qualified personnel, which could adversely impact operational efficiency and growth opportunities[79]. - The complexities of implementing cost reduction and restructuring activities may lead to delays in realizing expected efficiencies and benefits[70]. - The company’s transformation into an integrated distribution platform requires significant investment and carries risks that could impact revenue and profitability[72]. - Disruptions in relationships with key third-party partners or cyberattacks could impact revenues and operational costs, especially during peak periods[93]. - Global sourcing disruptions and evolving trade policies could negatively affect product costs and availability, particularly due to reliance on suppliers in Asia[95]. - Climate-related risks, including severe weather events, could lead to increased operational costs and disruptions in supply chains[123]. - The company is subject to various legal proceedings and regulatory compliance risks, which could result in significant liabilities and distract management[134]. Sustainability and Corporate Responsibility - The company’s sustainability strategy includes goals for greenhouse gas emissions reduction, plastic reduction, and achieving zero waste in a significant percentage of its DCs[52]. - Failure to meet customer demands for eco-conscious products and compliance with environmental standards could result in loss of market share[137]. Financial Management and Shareholder Returns - The company repurchased 8 million shares of common stock in 2024 for a total consideration of $300 million, with $725 million remaining available for stock repurchases under the current program[199]. - The company suspended its quarterly cash dividend in May 2020 and does not anticipate resuming dividends in the foreseeable future[149]. - The common stock price has experienced volatility, which may continue, potentially leading to substantial losses for shareholders[147].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $1.6 billion, down approximately 10% compared to the same quarter last year, primarily due to lower sales in the retail business and reduced consumer traffic [44][50] - GAAP operating income for Q4 was $20 million, down from $52 million in the prior year, with adjusted operating income at $32 million compared to $57 million [45][50] - Adjusted net income from continuing operations for Q4 was $20 million or $0.66 per diluted share, down from $43 million or $1.13 per diluted share in the prior year [47][50] - Full-year 2024 total company sales were $7 billion, down from $7.8 billion in 2023, with adjusted net income from continuing operations at $114 million or $3.30 per share, compared to $263 million or $6.61 per share in the prior year [49][51] Business Line Data and Key Metrics Changes - ODP Business Solutions revenue for Q4 was $827 million, down 9% year-over-year, influenced by a weak macroeconomic environment and reduced enterprise spending [54] - Office Depot's revenue for Q4 was $784 million, a 13% decline driven by fewer retail stores and lower consumer demand [58] - Veyor's third-party revenue increased by 150% year-over-year, reaching $20 million, while consolidated sales were $1.1 billion [63] Market Data and Key Metrics Changes - The hospitality industry represents a $16 billion market, with ODP securing a key supplier agreement, marking a significant entry into this growing sector [16][28] - The overall addressable market opportunity, including healthcare and other sectors, is estimated to exceed $60 billion [32] Company Strategy and Development Direction - The company is focusing on a B2B pivot, expanding beyond traditional office supplies into higher growth segments, including hospitality and healthcare [12][34] - An "optimized for growth" restructuring plan has been launched to accelerate revenue growth in B2B while reducing reliance on retail operations [34][36] - The company aims to leverage its supply chain and distribution capabilities to capture new business opportunities and enhance customer service [13][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2024 due to macroeconomic factors and competitive pressures but expressed optimism about future growth opportunities [10][38] - The company expects to see benefits from its B2B initiatives and the hospitality sector, with a focus on long-term sustainable growth [41][78] Other Important Information - The company ended the quarter with total liquidity of $644 million and total debt of $279 million, maintaining a solid balance sheet [66] - Capital expenditures in Q4 were $25 million, flat with the prior year, primarily focused on growth investments [48] Q&A Session Summary Question: Can you discuss the genesis of the hospital deal? - The deal originated from an existing relationship, with the customer recognizing the need for a reliable supply chain, leading to ODP being selected as a preferred partner [81][82] Question: How should we think about the revenue ramp from this deal? - The revenue ramp will be a combination of exclusive products and a "hunting license" approach, with joint sales efforts expected to enhance growth [90] Question: What is the timeframe for the optimize for growth plan? - The plan is a multiyear initiative, expected to take three to four years to realize the projected EBITDA uplift [94] Question: Have you considered strategic alternatives for the retail business? - The company is always exploring ways to maximize shareholder value, including potential strategic alternatives for the retail segment [97] Question: What are your assumptions for growth in the B2B office suppliers market? - The B2B segment is expected to hold steady, with ongoing challenges in the office supply sector making market share difficult to gauge [106] Question: How much exposure does ODP have to the federal government? - ODP does not have significant exposure to federal business at this moment [112]

Q120 Fourth Quarter & Full Year 2024 Financial Results v Safe Harbor Statement The Private Securities Litigation Reform Act of 1995, as amended, (the "Act"), provides protection from liability in private lawsuits for "forward-looking" statements made by public companies under certain circumstances, provided that the public company discloses with specificity the risk factors that may impact its future results. The Company wants to take advantage of the "safe harbor" provisions of the Act. Certain statements ...

Core Viewpoint - ODP Corp. reported quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.80 per share, and showing a decline from $0.92 per share a year ago, indicating a significant earnings surprise of -17.50% [1][2] Financial Performance - The company posted revenues of $1.62 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.92%, but down from $1.81 billion year-over-year [2] - Over the last four quarters, ODP Corp. has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Performance - ODP Corp. shares have declined approximately 15.6% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current Zacks Rank for ODP Corp. is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.27 on revenues of $1.67 billion, and for the current fiscal year, it is $4.36 on revenues of $6.75 billion [7] - The trend of earnings estimate revisions is mixed, which could change following the recent earnings report [6] Industry Context - The Retail - Miscellaneous industry, to which ODP Corp. belongs, is currently in the top 12% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Total reported sales for Q4 2024 were $1.6 billion, a decrease of 10% compared to Q4 2023, primarily due to lower sales in the Office Depot Division and ODP Business Solutions Division[4] - GAAP operating income for Q4 2024 was $20 million, down from $52 million in the prior year, with net income from continuing operations of $11 million, or $0.36 per diluted share, compared to $39 million, or $1.02 per diluted share, in Q4 2023[10] - Adjusted operating income for Q4 2024 was $32 million, down from $57 million in Q4 2023, with adjusted EBITDA of $58 million compared to $83 million in the prior year[4] - Total reported sales for FY 2024 were $7.0 billion, down from $7.8 billion in FY 2023, with GAAP operating income of $163 million compared to $330 million in the prior year[19] - Adjusted net income from continuing operations for FY 2024 was $114 million, or adjusted diluted earnings per share of $3.30, down from $263 million, or $6.61 per diluted share, in FY 2023[19] - ODP Corporation reported Q4 2024 sales of $1.624 billion, a decrease of 9.9% from $1.803 billion in Q4 2023[34] - Gross profit for Q4 2024 was $331 million, down 16% from $394 million in Q4 2023, resulting in a gross margin of 20.4%[34] - ODP's net income from continuing operations for Q4 2024 was $11 million, compared to $39 million in Q4 2023, reflecting a decline of 71.8%[34] - The company reported a net loss of $3 million for the full year 2024, compared to a net income of $139 million in 2023[34] - Basic earnings per share from continuing operations for Q4 2024 was $0.36, down from $1.06 in Q4 2023[34] - Net income from continuing operations fell from $247 million in 2023 to $106 million in 2024, a decrease of 57.1%[38] - The company reported a total operating income of $20 million in Q4 2024, down from $52 million in Q4 2023, representing a decline of 61.5%[45] - Earnings per share from continuing operations (fully diluted) decreased to $3.08 in Q4 2024 from $6.22 in Q4 2023[46] - The adjusted EBITDA for the 52 weeks ended December 28, 2024, was $268 million, down from $459 million in the previous year[50] - Free cash flow for Q4 2024 was $9 million, a decrease from $46 million in Q4 2023, while adjusted free cash flow was negative at $(57) million[50] Cash Flow and Liquidity - Operating cash flow from continuing operations for FY 2024 was $159 million, down from $360 million in FY 2023, with adjusted free cash flow of $33 million compared to $288 million in the prior year[19] - The company has total available liquidity of approximately $644 million, consisting of $166 million in cash and cash equivalents and $478 million of available credit[19] - Cash and cash equivalents at the end of the period dropped from $395 million in 2023 to $171 million in 2024, a decrease of 56.7%[38] - Free cash flow for the year was significantly impacted, with net cash provided by operating activities decreasing from $331 million in 2023 to $130 million in 2024[38] Restructuring and Strategic Initiatives - The company expects to incur costs between $185 million and $230 million related to its "Optimize for Growth" restructuring plan, which is anticipated to generate approximately $380 million in EBITDA improvement[25] - The restructuring plan aims to reduce retail exposure and associated liabilities while targeting high-growth opportunities in the B2B marketplace[23] - Total value generated from the restructuring plan is projected to exceed $1.3 billion over its multi-year life[25] - ODP plans to prioritize capital allocation toward core business growth opportunities in the B2B market over share repurchases in 2025[18] - The company plans to suspend growth investments in its consumer and retail business while focusing on B2B sector growth[24] Shareholder Actions - The company repurchased 1.4 million shares at a cost of $43 million in Q4 2024, and a total of 8 million shares for $300 million in FY 2024[17] Divisional Performance - Sales for the ODP Business Solutions Division decreased by 8% year-over-year, from $3,904 million in FY23 to $3,578 million in FY24[40] - The Office Depot Division reported a 14% decline in external sales, from $3,884 million in FY23 to $3,358 million in FY24[40] Asset and Liability Management - Total assets decreased from $3,887 million in 2023 to $3,529 million in 2024, a decline of 9.2%[36] - The total current liabilities decreased from $1,697 million in 2023 to $1,543 million in 2024, a reduction of 9.1%[36] - The company’s long-term debt increased from $165 million in 2023 to $270 million in 2024, an increase of 63.6%[36] - The total stockholders' equity decreased from $1,101 million in 2023 to $807 million in 2024, a decline of 26.6%[36] Store Operations - The company closed 22 stores in Q4 2023 and 16 stores in Q4 2024, resulting in a total of 869 retail stores in the U.S. by the end of 2024[53] - Total square footage of retail stores decreased to 19.2 million square feet in 2024 from 20.3 million square feet in 2023[53] Other Financial Metrics - The company incurred $33 million in asset impairments in Q4 2024, compared to $17 million in Q4 2023[46] - Merger and restructuring expenses were $47 million in Q4 2024, up from $4 million in Q4 2023[46] - The income tax expense for Q4 2024 was $40 million, consistent with the 0.6% margin reported in Q4 2023[46] - The company reported a legal matter monetization charge of $(70) million in Q4 2024, which impacted overall financial performance[46]

Group 1 - ODP Corp. closed at $18.11, showing a +0.22% change, outperforming the S&P 500's daily loss of 1.71% [1] - The stock has lost 19.69% over the past month, while the Retail-Wholesale sector gained 4% and the S&P 500 gained 2.2% [1] Group 2 - ODP Corp. is set to release its earnings report on February 26, 2025, with an expected EPS of $0.80, reflecting a 13.04% decrease from the same quarter last year [2] - Revenue is forecasted at $1.59 billion, down 11.77% from the prior-year quarter [2] Group 3 - Recent changes in analyst estimates indicate a favorable outlook on ODP Corp.'s business health and profitability [3] - The Zacks Rank system, which incorporates estimate changes, has a proven track record of stock performance [4][5] Group 4 - ODP Corp. has a Zacks Rank of 3 (Hold) and a Forward P/E ratio of 4.15, indicating a discount compared to the industry's average Forward P/E of 15.58 [5] - The company has a PEG ratio of 0.3, significantly lower than the Retail - Miscellaneous industry's average PEG ratio of 2.17 [6] Group 5 - The Retail - Miscellaneous industry, part of the Retail-Wholesale sector, ranks in the top 12% of all industries according to the Zacks Industry Rank [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

ODP Corp. (ODP) closed at $20.12 in the latest trading session, marking a -1.32% move from the prior day. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq depreciated by 0.36%.The office supply retailer's shares have seen a decrease of 13.93% over the last month, not keeping up with the Retail-Wholesale sector's gain of 9.07% and the S&P 500's gain of 4.19%.Market participants will be closely following the financial results of ODP Co ...

The latest trading session saw ODP Corp. (ODP) ending at $23.39, denoting a -0.64% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.53%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.25%.Prior to today's trading, shares of the office supply retailer had gained 3.52% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.57% and outpaced the S&P 500's gain of 1.24% in that time.Analysts and in ...