ODP Corp Lowers 2024 Forecast Amid Weak Q3 Earnings Results

In a recent report, ODP Corp. announced disappointing third-quarter results, prompting a downward revision of its fiscal 2024 forecast. Key metrics including adjusted EPS and sales projections now fall below market estimates, indicating a challenging outlook for the company.

Date: 06-11-2024

AI Rating: 4

ODP Corp.'s report highlighted several concerning metrics affecting the stock's potential performance. The adjustment of the earnings per share (EPS) forecast for fiscal 2024 is significant, now anticipated to be in the range of $3.10 to $3.80, a decrease from the prior estimate of $4.25 to $5.00. This revision is notably below analysts’ expectations of $4.27, indicating a strong disappointment for investors.

Additionally, the report revealed that adjusted EBITDA expectations also fell to $260 million to $300 million, down from a previous forecast of $310 million to $350 million, which further reflects diminishing operational performance.

Furthermore, the company reported a decline in net income for the third quarter, with earnings dropping to $68 million or $2.04 per share from $82 million or $2.09 per share in the previous year. The revenue for the quarter was also disappointing, dropping by 11.3 percent to $1.780 billion compared to $2.007 billion last year.

The sales projections for fiscal 2024 have been amended to roughly $7 billion, aligning with previous expectations but below the analysts' forecast of $7.09 billion. This raises concerns about the company’s growth trajectory and market positioning moving forward.

Overall, the combination of these factors paints a pessimistic outlook for ODP Corp., likely resulting in negative sentiment from investors and potential downward pressure on stock prices in response to these disappointing results and forecasts.

Stocks: ODP