ODP Shares Dip As Q2 Earnings Misses Estimate

ODP Corp ODP reported second-quarter FY21 sales growth of 6% year-on-year, to $2.29 billion, beating the analyst consensus of $2.22 billion.
Business Solutions Division sales rose 12% Y/Y to $1.1 billion, Retail Division sales were flat, and CompuCom Division sales gained 4%.
Gross profit gained 13.5% Y/Y to $472 million, and the gross margin expanded around 135 basis points to 20.6%.
It reported an adjusted operating margin of 1.9% and an adjusted operating income of $44 million.
ODP held $691 million in cash and equivalents as of June 26, 2021.
Adjusted EBITDA rose 57.6% Y/Y to $93 million.
Net cash provided by operating activities for the six months amounted to $75 million.
Adjusted EPS of $0.51 missed the analyst consensus of $0.62.
"Simultaneously, demand for our core products and services grew in the quarter as customers and more businesses and schools returned to work and to in-class learning," said CEO Gerry Smith.
ODP modified its plan for the separation to include a spin-off of Consumer Business instead of the previously announced spin-off of B2B businesses.
ODP will own the newly formed B2B digital platform technology business, including BuyerQuest, its global sourcing office, and other sourcing, supply chain, and logistics assets.
Price action: ODP shares are trading lower by 4.76% at $45.6 on the last check Wednesday.

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