ODP Registers 7% Sales Decline In Q3, Misses Consensus - ODP (NASDAQ:ODP)

ODP Corp ODP reported a third-quarter FY21 sales decline of 7% year-on-year, to $2.18 billion, missing the analyst consensus of $2.27 million.
Business Solutions Division sales fell 2% Y/Y, and Retail division decreased 13%.
Adjusted EPS of $1.76 beat the analyst consensus of $1.52.
The gross profit declined 7.9% Y/Y to $504 million with a margin of 23.1%.
The operating margin was 4.8%, and operating income for the quarter rose 1.9% to $104 million. The adjusted operating income amounted to $122 million.
Adjusted EBITDA declined 7% Y/Y to $162 million.
ODP held $753 million in cash and equivalents as of September 25, 2021. Cash provided by operating activities totaled $121 million, and the free cash flow was $102 million.
"The pace of back-to-office trends was slower during the quarter due to the well-publicized spread of the Delta variant," said CEO Gerry Smith.
ODP said it continues to progress on its plans to separate into two, independent, publicly-traded companies.
ODP said it is also advancing its collaboration with Microsoft Corp MSFT and remains focused on bringing BuyerQuest's value proposition to Microsoft's Business Central customers in the future.
Price Action: ODP shares are trading lower by 3.10% at $43.00 on the last check Wednesday.