ODP (NASDAQ:ODP) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• ODP Corporation shares gapped up significantly after reporting quarterly earnings of $0.51 per share, exceeding analysts' expectations of $0.33.
• The company's revenue fell by 7.6% compared to the same quarter last year, and its stock recently traded at $17.37.
• Wall Street Zen downgraded ODP from a "buy" rating to a "hold" rating on June 22nd, reflecting a more cautious outlook on the stock.

Shares of The ODP Corporation (NASDAQ:ODP - Get Free Report) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $17.55, but opened at $19.01. ODP shares last traded at $17.37, with a volume of 113,636 shares.

The specialty retailer reported $0.51 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.33 by $0.18. The firm had revenue of $1.59 billion for the quarter, compared to analysts' expectations of $1.59 billion. ODP had a return on equity of 11.22% and a net margin of 0.39%. The company's revenue for the quarter was down 7.6% compared to the same quarter last year. During the same period last year, the firm earned $0.56 earnings per share.

Wall Street Analyst Weigh In

Several analysts have commented on the company. UBS Group increased their target price on ODP from $17.00 to $19.00 and gave the company a "neutral" rating in a research note on Thursday. Wall Street Zen downgraded ODP from a "buy" rating to a "hold" rating in a report on Sunday, June 22nd.

Hedge Funds Weigh In On ODP

A number of institutional investors and hedge funds have recently made changes to their positions in ODP. Norges Bank purchased a new position in ODP during the fourth quarter valued at $2,589,000. ExodusPoint Capital Management LP bought a new position in shares of ODP in the fourth quarter worth about $797,000. Wells Fargo & Company MN lifted its position in shares of ODP by 16.2% during the 4th quarter. Wells Fargo & Company MN now owns 19,539 shares of the specialty retailer's stock valued at $444,000 after buying an additional 2,717 shares in the last quarter. Russell Investments Group Ltd. grew its stake in shares of ODP by 65.3% during the 4th quarter. Russell Investments Group Ltd. now owns 53,187 shares of the specialty retailer's stock valued at $1,209,000 after acquiring an additional 21,011 shares during the period. Finally, Neuberger Berman Group LLC increased its holdings in ODP by 0.5% in the 4th quarter. Neuberger Berman Group LLC now owns 911,604 shares of the specialty retailer's stock worth $20,697,000 after acquiring an additional 4,569 shares in the last quarter. Hedge funds and other institutional investors own 99.56% of the company's stock.

ODP Stock Up 0.3%

The company has a market capitalization of $592.46 million, a PE ratio of 29.84, a price-to-earnings-growth ratio of 0.45 and a beta of 1.38. The company's fifty day moving average is $18.02 and its 200-day moving average is $17.08. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.45 and a current ratio of 0.94.

ODP Company Profile

The ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates through four divisions: ODP Business Solutions, Office Depot, Veyer, and Varis.