How did ODP's Q4 2024 earnings surprise analysts?

ODP's Q4 2024 earnings fell short of analysts' expectations in several key metrics, leading to a significant decline in its stock price and raising concerns about the company's performance and future prospects.

1. **Earnings Per Share (EPS)**:
- ODP reported an EPS of $0.66 for Q4 2024, which was a significant miss compared to the expected EPS of $1.07.
- This represented a 38% shortfall from the forecasted EPS, indicating a substantial underperformance.

2. **Revenue**:
- The company's total revenue for the quarter was $1.62 billion, which was below the estimated $1.69 billion.
- This marked a 10% year-over-year decline in revenue, reflecting a challenging sales environment and operational challenges.
3. **Stock Reaction**:
- Following the earnings release, ODP's stock experienced a notable drop, with a 19.2% decline in pre-market trading.
- The stock's performance was further exacerbated by broader market concerns and a cautious outlook for the B2B office supplies market.
4. **Operational Challenges**:
- ODP attributed the revenue decline primarily to lower sales in its Office Depot retail division, which saw a 13% decrease due to 47 fewer stores in operation and reduced retail and online traffic.
- The ODP Business Solutions division also experienced a 9% sales drop, driven by macroeconomic factors causing reduced business customer spending.
5. **Future Outlook**:
- Despite the disappointing results, ODP is focusing on restructuring and entering new markets to drive growth.
- The company announced a new "Optimize for Growth" plan aimed at accelerating B2B revenue growth while reducing retail exposure.

In conclusion, ODP's Q4 2024 earnings fell below expectations due to a combination of lower EPS and revenue. This performance was impacted by macroeconomic challenges, including inflation, and operational issues within its retail and business divisions. While the company is taking steps to address these challenges and focus on growth opportunities, the near-term outlook remains cautious.