Overview

* ODP Q3 revenue falls 9% yr/yr, missing analyst expectations

* Adjusted operating income beats estimates, despite revenue decline

Outlook

* ODP will not provide forward-looking guidance due to pending merger with Atlas Holdings

* ODP expects merger with Atlas Holdings to close by end of 2025

Result Drivers

* RETAIL STORE CLOSURES - Sales decline in Office Depot Division driven by 63 fewer retail locations and reduced traffic

* MACROECONOMIC CHALLENGES - ODP Business Solutions sales decline due to ongoing macroeconomic headwinds and softer enterprise demand

* HOSPITALITY SECTOR GROWTH - ODP Business Solutions sees revenue trend improvement due to new customer onboarding and growth in hospitality sector

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $1.62 $1.66

bln bln (3

Analysts

)

Q3 Miss $62 mln $62.99

Adjusted mln (3

EBITDA Analysts

)

Q3 Beat $38 mln $37.75

Adjusted mln (3

Operatin Analysts

g Income )

Q3 $1.14

Adjusted

EPS

continui

ng

operatio

ns

Q3 Free $78 mln

Cash

Flow

Q3 $34 mln

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."

* Wall Street's median 12-month price target for ODP Corp ( ODP ) is $35.00, about 20.6% above its November 4 closing price of $27.80

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)