ODP Q1 Earnings Beat Estimates Despite Fewer Retail Stores

ODP Corp ODP reported a first-quarter FY22 sales of $2.18 billion, flat Y/Y, beating the consensus of $2.13 billion.
Business Solutions Division sales climbed 9% Y/Y, while Retail division sales decreased 9%.
Adjusted EPS of $1.27 beat the analyst consensus of $0.79.
Gross profit declined 2.2% Y/Y to $484 million with a margin of 22.2%.
Operating margin was 3.5%, and operating income for the quarter rose 10.1% to $76 million. Adjusted operating income amounted to $88 million.
Adjusted EBITDA declined 6% Y/Y to $125 million.
ODP held $557 million in cash and equivalents as of March 26, 2022. Cash provided by operating activities totaled $30 million, and the adjusted free cash flow was $16 million.
"As we move closer to concluding the strategic initiatives we previously outlined, we remain committed to maximizing the value of our consumer business and driving growth on our B2B platform. We also continue to expect our results this year to be generally in a range consistent with the prior year on a comparable basis," said CEO Gerry Smith.
Price Action: ODP shares are trading higher by 2.67% at $44.66 on the last check Wednesday.

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