ODP (NASDAQ:ODP) Releases Earnings Results, Misses Expectations By $0.59 EPS

ODP (NASDAQ:ODP) posted its quarterly earnings data on Wednesday. The specialty retailer reported $1.05 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.64 by ($0.59), Briefing.com reports. ODP had a net margin of 1.77% and a return on equity of 19.45%. The business had revenue of $1.87 billion for the quarter, compared to analysts’ expectations of $1.96 billion. During the same quarter in the previous year, the firm earned $1.78 EPS. ODP’s revenue was down 11.2% compared to the same quarter last year. ODP updated its FY24 guidance to $6.30-6.60 EPS and its FY 2024 guidance to 6.300-6.600 EPS.

ODP Stock Performance

ODP stock opened at $49.00 on Wednesday. ODP has a 1-year low of $39.36 and a 1-year high of $58.98. The business has a 50-day moving average price of $51.59 and a 200 day moving average price of $50.75. The company has a market capitalization of $1.79 billion, a P/E ratio of 15.36, a PEG ratio of 0.65 and a beta of 1.68. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.99 and a quick ratio of 0.54.

Analyst Ratings Changes

A number of brokerages have recently issued reports on ODP. StockNews.com raised shares of ODP from a “hold” rating to a “buy” rating in a research note on Tuesday, March 12th. TheStreet downgraded shares of ODP from a “b-” rating to a “c+” rating in a research note on Wednesday, February 28th. One equities research analyst has rated the stock with a hold rating and three have issued a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $62.00.

ODP declared that its Board of Directors has approved a stock repurchase plan on Wednesday, February 28th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the specialty retailer to reacquire up to 48.7% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other news, CFO Diego Anthony Scaglione sold 25,000 shares of the stock in a transaction that occurred on Friday, March 1st. The shares were sold at an average price of $55.00, for a total transaction of $1,375,000.00. Following the transaction, the chief financial officer now directly owns 96,104 shares in the company, valued at $5,285,720. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 3.60% of the stock is owned by company insiders.

About ODP

The ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates through four divisions: ODP Business Solutions, Office Depot, Veyer, and Varis.