ODP's Q4 Earnings Top Estimates

ODP Corp ODP reported a fourth-quarter FY21 sales decline of 2% year-on-year, to $2.04 billion, beating the Street view of $1.98 billion.
Business Solutions Division sales rose 2% Y/Y to $1.2 billion, and Retail division sales decreased 7% to $885 million.
Adjusted EPS of $0.71 beat the consensus of $0.49.
The gross profit declined 4.2% Y/Y to $432 million with a margin of 21.2%. Adjusted EBITDA increased 11.5% Y/Y to $87 million.
The operating margin was 1.5%, and operating income for the quarter rose 55% to $31 million. The adjusted operating income amounted to $47 million.
ODP held $514 million in cash and equivalents as of December 25, 2021. Cash provided by operating activities for the quarter totaled $88 million, and the free cash flow was $62 million.
"We delivered a solid operating performance in 2021 against a macroeconomic backdrop challenged by supply chain constraints, inflation, and a slower pace of back-to-office trends, as we leveraged our pricing flexibility and the strength of our distribution network to help offset some of these market dynamics," said CEO Gerry Smith.
ODP anticipates annual revenue, operating, and cash flow results consistent with the prior year and expects to update its outlook for 2022 as conditions related to the pandemic and supply chain challenges dissipate and progress is made on its previously disclosed strategic initiatives.
Price Action: ODP shares are trading higher by 1.98% at $43.83 on the last check Wednesday.

Earnings Calendar