ODP Q3 revenue falls more than expected on decline in Office Depot division

ODP

05/11/2025 11:58

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/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$1.62 bln
$1.66 bln (3 Analysts)
Q3 Adjusted EBITDA
Miss
$62 mln
$62.99 mln (3 Analysts)
Q3 Adjusted Operating Income
Beat
$38 mln
$37.75 mln (3 Analysts)
Q3 Adjusted EPS continuing operations
$1.14
Q3 Free Cash Flow
$78 mln
Q3 Operating Income
$34 mln


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 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: ID:nBwyCdg3a

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(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.)