ODP Corporation’s Q2 results and lowered guidance have led to a 30% drop in shares, with CEO Gerry Smith warning about consumer spending. The company’s Q2 performance was below expectations, largely due to more cautious business spending and weaker consumer activity.
The parent company of The Office Depot experienced a 10% drop in sales to $1.7B, missing expectations by $40M. Adjusted profit per share was cut by more than half to $0.56, missing expectations by $0.64. Adjusted EBITDA was down 40% to $57M, and operating income margin fell 140 basis points to 3%. However, adjusted free cash flow became positive by $5M compared to $(24M) in the same quarter last year.
ODP now expects sales of at least $7B, down 12% from 2023, and adjusted earnings per share between $4.25 to $5 per share, which is less than the Street’s expectation of $6.37 per share. The company’s FY24 guidance has been updated to adjust for the uncertain macroeconomic environment.
Source: MSN
Source: Yahoo Finance
Source: Bussiness Insider
Source: ODP Corporation
