ODP Cuts FY24 Outlook After Q2 Slips To Loss; Stock Plunges In Pre-market - Update

(RTTNews) - Workplace and technology solutions provider ODP Corp. (ODP), while reporting a loss in its second quarter, compared to prior year's profit, on Wednesday trimmed its forecast for fiscal 2024.

In pre-market activity on the Nasdaq, ODP shares were losing around 18.3 percent to trade at $31.00.

Anthony Scaglione, executive vice president and chief financial officer, said, "As a result of our first half performance, along with a continuing challenging macro environment and lower than anticipated sales pipeline conversion in ODP Business Solutions, we are lowering our full year outlook. While first half results were below our expectations, our team remains focused on executing upon opportunities in our business to grow our top line, leveraging our low-cost business model, strong balance sheet, and diverse routes to market."

For fiscal 2024, the company now expects adjusted earnings per share of $4.25 to $5.00, lower than previous estimate of $6.30 to $6.60.

Analysts on average expect the company to report earnings of $6.37 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Adjusted EBITDA is now expected to be $310 million to $350 million, compared to $430 million to $450 million expected earlier.

Sales are now projected to be at least $7 billion, while analysts expect $7.39 billion. The company earlier estimated sales at the lower end of its guidance range of a decline of 2 percent to 5 percent.

In its second quarter, the company's loss was $4 million, compared to profit of $43 million in the same period last year.

Loss per share was $0.12, compared to profit of $1.09 a year ago.

Adjusted earnings were $20 million or $0.56 per share for the period, compared to $48 million or $1.22 a year ago. The Street was looking for earnings of $1.20 per share.

Revenue declined to $1.717 billion from $1.907 billion in the same period last year, while analysts expected $1.76 billion.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.