Here's Why ODP Stock Soared on Monday
Shares of The ODP Corporation (NASDAQ: ODP) -- the parent company of brick-and-mortar retail chain Office Depot -- soared on Monday after the company announced preliminary financial results for the second quarter of 2022, updated full-year 2022 guidance, and announced a $600 million share-buyback plan. As of 1:30 p.m. ET, ODP stock was up 15%.
For Q2, ODP expects to report sales of $2 billion, down almost 13% from last year but better than what Wall Street was expecting. It does expect to report negative adjusted free cash flow (FCF) of around $120 million. However, it's typical for ODP's FCF to dip in Q2 as it builds up inventory in anticipation of back-to-school shopping in the third quarter.
For 2022, ODP expects sales of $8.45 billion to $8.6 billion and adjusted FCF of $200 million to $225 million. For perspective, it reported sales of almost $8.5 billion and adjusted FCF of $328 million. Therefore, sales are expected to be flat year over year, and FCF is expected to dip. But the stock is up today because, again, this is better than what the market was expecting.
Source Fool.com
