ODP Corp Q3 Profit Down; But Stock Up

ODP Corp. (ODP) reported that its third-quarter net income declined to $57 million, or $1.04 per share from $60 million or $1.09 per share in the third quarter of 2019.

Adjusted net income was $97 million or $1.80 per share, compared to $84 million, or $1.53 per share, in the third quarter of 2019. Reduced interest expense and fewer outstanding shares contributed to this performance.

Total reported sales for the third quarter of 2020 were $2.54 billion, a decrease of 9% compared to the third quarter of 2019. The year-over-year decrease in revenue was primarily the result of lower sales in the Business Solutions Division and CompuCom Division driven by impacts related to the COVID-19 pandemic.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.09 per share and revenues of $2.51 billion for the quarter. Analysts' estimates typically exclude special items.

The Board approved the reinstatement of the company's stock repurchase program beginning in the fourth quarter of 2020, which was temporarily suspended in May 2020 as a result of the economic uncertainty due to COVID-19.

In the Thursday regular trade, ODP was trading at $25.00 up $3.96 or 18.82%.

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