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The ODP Corporation (ODP) to Post Q2 Earnings: What to Expect?
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As The ODP Corporation (ODP - Free Report) prepares to announce its second-quarter 2024 earnings on Aug 7 before market open, investors are keenly watching for insights into the company’s performance and strategic direction.
The Zacks Consensus Estimate for second-quarter revenues stands at $1,731 million, which indicates a decline of 9.3% from the prior-year reported figure.
The bottom line of this leading provider of products, services and technology solutions to businesses and consumers is expected to have improved year over year. Over the past 30 days, the Zacks Consensus Estimate for earnings per share has been stable at $1.13 per share, which suggests an increase of 14.1% from the year-ago quarter.
The ODP Corporation has a trailing four-quarter earnings surprise of 8.6%, on average. In the last reported quarter, the company missed the Zacks Consensus Estimate by a margin of 36%.
Factors to Consider
The ODP Corporation is likely to have faced a revenue decline, primarily due to ongoing macroeconomic challenges. With a restrictive business spending climate and reduced consumer activity, the current landscape looks tough. The company continues to face challenges that impact both its B2B and B2C segments.
Enterprises and consumers are grappling with budget constraints and reduced spending power, resulting in soft demand for the company’s products and services. The ODP Corporation has experienced softness in key product categories, such as technology and furniture. The sluggish performance in these high-margin areas, if persisted in the second quarter, is likely to have hurt overall revenues.
Despite the aforementioned headwinds, The ODP Corporation's Project CORE initiative, aimed at boosting operational efficiency and lowering costs, is likely to have favorably impacted the company’s bottom line. By streamlining processes, Project CORE helps the company lower its operational costs. The initiative focuses on optimizing resources across various departments, which contributes to a leaner and more cost-effective business model.
Additionally, the strategic decision to pursue the sale of Varis reflects The ODP Corporation's focus on cost management and resource optimization, further aiding its efforts to enhance profitability.
The Veyer division, The ODP Corporation's supply-chain services and logistics provider, not only provides strong support to its internal customers, ODP Business Solutions and Office Depot, but also to its third-party customers. The expansion of Veyer’s market service capabilities and modernization of its tech stack not only attract more clients but also improve operational efficiency. With revenues from third-party customers increasing by 29% and EBITDA growing nearly 40% year over year in the first quarter, Veyer’s strong performance is expected to have continued in the second quarter.
The ODP Corporation Price, Consensus and EPS Surprise
Our proven model doesn’t conclusively predict an earnings beat for The ODP Corporation this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
The ODP Corporation currently has a Zacks Rank #3 but an Earnings ESP of 0.00%, thus making the surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Burlington Stores (BURL - Free Report) has an Earnings ESP of +5.62% and currently sports a Zacks Rank of 1. BURL's top line is anticipated to advance year over year when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.41 billion, which suggests an 11% increase from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register an increase in the bottom line. The consensus estimate for Burlington Stores’ fiscal second-quarter earnings is pegged at 93 cents a share, up 55% from the year-ago quarter. BURL has a trailing four-quarter earnings surprise of 21.7%, on average.
Amazon.com, Inc. (AMZN - Free Report) currently has an Earnings ESP of +4.58% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports second-quarter 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.03 implies a surge of 63.5% from the year-ago reported number.
Amazon’s top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $148.6 billion, which suggests an increase of 10.6% from the prior-year quarter. AMZN has a trailing four-quarter earnings surprise of 48.2%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.23% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $80 billion, which implies growth of 1.3% from the year-ago quarter’s reported figure.
The consensus estimate for Costco’s earnings has increased by a penny in the past 30 days to $5.02 per share. The consensus estimate for earnings suggests an increase of 3.3% from the year-ago quarter’s reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.
Image: Bigstock
The ODP Corporation (ODP) to Post Q2 Earnings: What to Expect?
As The ODP Corporation (ODP - Free Report) prepares to announce its second-quarter 2024 earnings on Aug 7 before market open, investors are keenly watching for insights into the company’s performance and strategic direction.
The Zacks Consensus Estimate for second-quarter revenues stands at $1,731 million, which indicates a decline of 9.3% from the prior-year reported figure.
The bottom line of this leading provider of products, services and technology solutions to businesses and consumers is expected to have improved year over year. Over the past 30 days, the Zacks Consensus Estimate for earnings per share has been stable at $1.13 per share, which suggests an increase of 14.1% from the year-ago quarter.
The ODP Corporation has a trailing four-quarter earnings surprise of 8.6%, on average. In the last reported quarter, the company missed the Zacks Consensus Estimate by a margin of 36%.
Factors to Consider
The ODP Corporation is likely to have faced a revenue decline, primarily due to ongoing macroeconomic challenges. With a restrictive business spending climate and reduced consumer activity, the current landscape looks tough. The company continues to face challenges that impact both its B2B and B2C segments.
Enterprises and consumers are grappling with budget constraints and reduced spending power, resulting in soft demand for the company’s products and services. The ODP Corporation has experienced softness in key product categories, such as technology and furniture. The sluggish performance in these high-margin areas, if persisted in the second quarter, is likely to have hurt overall revenues.
Despite the aforementioned headwinds, The ODP Corporation's Project CORE initiative, aimed at boosting operational efficiency and lowering costs, is likely to have favorably impacted the company’s bottom line. By streamlining processes, Project CORE helps the company lower its operational costs. The initiative focuses on optimizing resources across various departments, which contributes to a leaner and more cost-effective business model.
Additionally, the strategic decision to pursue the sale of Varis reflects The ODP Corporation's focus on cost management and resource optimization, further aiding its efforts to enhance profitability.
The Veyer division, The ODP Corporation's supply-chain services and logistics provider, not only provides strong support to its internal customers, ODP Business Solutions and Office Depot, but also to its third-party customers. The expansion of Veyer’s market service capabilities and modernization of its tech stack not only attract more clients but also improve operational efficiency. With revenues from third-party customers increasing by 29% and EBITDA growing nearly 40% year over year in the first quarter, Veyer’s strong performance is expected to have continued in the second quarter.
The ODP Corporation Price, Consensus and EPS Surprise
The ODP Corporation price-consensus-eps-surprise-chart | The ODP Corporation Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for The ODP Corporation this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
The ODP Corporation currently has a Zacks Rank #3 but an Earnings ESP of 0.00%, thus making the surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Burlington Stores (BURL - Free Report) has an Earnings ESP of +5.62% and currently sports a Zacks Rank of 1. BURL's top line is anticipated to advance year over year when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.41 billion, which suggests an 11% increase from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register an increase in the bottom line. The consensus estimate for Burlington Stores’ fiscal second-quarter earnings is pegged at 93 cents a share, up 55% from the year-ago quarter. BURL has a trailing four-quarter earnings surprise of 21.7%, on average.
Amazon.com, Inc. (AMZN - Free Report) currently has an Earnings ESP of +4.58% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports second-quarter 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.03 implies a surge of 63.5% from the year-ago reported number.
Amazon’s top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $148.6 billion, which suggests an increase of 10.6% from the prior-year quarter. AMZN has a trailing four-quarter earnings surprise of 48.2%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.23% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $80 billion, which implies growth of 1.3% from the year-ago quarter’s reported figure.
The consensus estimate for Costco’s earnings has increased by a penny in the past 30 days to $5.02 per share. The consensus estimate for earnings suggests an increase of 3.3% from the year-ago quarter’s reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.