Stock of the Day

February 26, 2020

ODP (ODP)

$28.00
$0.00 (0.0%)
Market Cap: $843.30M

About ODP

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. The ODP Business Solutions division offers adjacency products, including cleaning, janitorial, and breakroom supplies, office furniture, technology products; and copy and print services through sales force, catalogs, telesales, and through Internet websites. This segment also engages in office supply distribution business. The Office Depot division sells office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture; and offers business services, including copying, printing, digital imaging, mailing, shipping, and technology support services through a fully integrated omni-channel platform of 980 Office Depot and OfficeMax retail stores, and through www.officedepot.com. The Veyer division engages in supply chain, distribution, procurement, and global sourcing operations. The Varis division operates tech-enabled B2B indirect procurement marketplace, where buyers and suppliers to transact through the platform's consumer-like buying experience, advanced spend management tools, network of suppliers, and technology capabilities. The company offers its products under various brands, including Office Depot, OfficeMax, and Grand&Toy, as well as others. The ODP Corporation was incorporated in 1986 and is headquartered in Boca Raton, Florida.

Today's Trend

The ODP Corporation (ODP) is trading higher after a beat on recent quarterly EPS and fresh analyst activity, but investors are weighing a one‑off $107M charge and mixed analyst estimate changes. Below are the key news items likely driving intraday moves and near‑term sentiment.

  • ODP reported a quarterly earnings beat — $1.14 EPS vs. $0.82 consensus — which supports upside sentiment despite year‑over‑year revenue decline. Earnings Release
  • UBS raised its price target on ODP from $19 to $28 (maintaining a "neutral" rating), signaling stronger near‑term price appreciation expectations and providing a valuation floor for investors. UBS Research Note
  • Sidoti issued a slew of small estimate revisions: several quarterly raises and cuts and a modestly lower FY2026 EPS view (from $3.38 to $3.34). These tweaks are mixed and emphasize limited near‑term change to consensus. (Source: Sidoti research notes)
  • Corporate development: ODP is awaiting stockholder approval of the Atlas merger (merger agreement announced Sept. 22, 2025). The vote is a catalyst but outcome/timing remain uncertain. Merger Update
  • ODP disclosed a one‑off $107M loss that management says pressures margin‑recovery narratives; this large charge clouds near‑term profitability and valuation multiples. One‑Off Loss Article

Bottom line for investors: the EPS beat and UBS target lift are positive drivers, but the one‑off charge and mixed analyst revisions keep outlook uncertain. Key near‑term catalysts to watch: investor reaction to UBS target, final shareholder vote on the Atlas merger, and management commentary on margin recovery following the $107M charge.