B2B distributor ODP's Q2 revenue misses estimates
Overview
ODP Q2 revenue declines 8%, missing analyst expectations, per LSEG data
Adjusted EPS of $0.51 beats analyst estimates, indicating strong operational efficiency
Adjusted EBITDA and operating income exceed forecasts, driven by B2B and consumer divisions
Outlook
Company expects over $115 mln in adjusted free cash flow for 2025
ODP anticipates improved revenue trends in B2B distribution in H2 2025
Company sees robust consumer segment results supporting cash generation
ODP remains confident in driving continued improvement and value creation
Result Drivers
RETAIL CLOSURES - Revenue decline attributed to 60 fewer retail locations and reduced consumer traffic
B2B IMPROVEMENTS - B2B division showed improved revenue trends, driven by new customer onboarding
OPERATIONAL DISCIPLINE - Strong cash conversion and working capital management contributed to improved cash flow, per co-CFO Adam Haggard
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $1.59 bln | $1.59 bln (3 Analysts) |
Q2 Adjusted EPS | Beat | $0.51 | $0.36 (3 Analysts) |
Q2 Adjusted EBITDA | Beat | $47 mln | $45.70 mln (3 Analysts) |
Q2 Adjusted Operating Income | Beat | $25 mln | $18.50 mln (3 Analysts) |
Q2 Adjusted EPS continuing operations | $0.51 | ||
Q2 Free Cash Flow | $4 mln | ||
Q2 Operating Income | $9 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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 is $35.00, about 49.9% above its August 5 closing price of $17.55
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago
Press Release:
