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

ODP (NASDAQ:ODP) released its quarterly earnings data on Wednesday. The specialty retailer reported $1.05 earnings per share (EPS) for the quarter, missing the consensus estimate 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 company had revenue of $1.87 billion during the quarter, compared to analysts’ expectations of $1.96 billion. During the same period last year, the firm earned $1.78 earnings per share. ODP’s quarterly revenue was down 11.2% on a year-over-year basis. ODP updated its FY24 guidance to $6.30-6.60 EPS and its FY 2024 guidance to 6.300-6.600 EPS.

ODP Stock Down 0.0 %

NASDAQ:ODP opened at $43.20 on Friday. The company’s 50 day moving average is $51.09 and its two-hundred day moving average is $50.64. The company has a market cap of $1.58 billion, a PE ratio of 12.78, a P/E/G ratio of 0.65 and a beta of 1.68. ODP has a twelve month low of $39.36 and a twelve month high of $58.98. The company has a current ratio of 0.99, a quick ratio of 0.54 and a debt-to-equity ratio of 0.15.

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

Wall Street Analyst Weigh In

Several research firms have commented on ODP. StockNews.com upgraded ODP from a “hold” rating to a “buy” rating in a report on Tuesday, March 12th. TheStreet downgraded ODP from a “b-” rating to a “c+” rating in a report on Wednesday, February 28th. One analyst has rated the stock with a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $62.00.

Insiders Place Their Bets

In related news, CFO Diego Anthony Scaglione sold 25,000 shares of the firm’s stock in a transaction on Friday, March 1st. The stock was sold at an average price of $55.00, for a total value of $1,375,000.00. Following the completion of the transaction, the chief financial officer now owns 96,104 shares in the company, valued at approximately $5,285,720. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 3.60% of the company’s stock.

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.