ODP shares climbed on first-quarter earnings beat and plans to spin off its distribution business into a separate publicly traded company.
For the first quarter, adjusted earnings came in at $1.21 a share, exceeding the FactSet consensus estimate of 72 cents a share.
Revenue rose +13% from the year-ago quarter to $2.36 billion, but was below the FactSet estimate of $2.41 billion.
Office Depot owner ODP Corp said it would spin off its distribution platform, which schools and offices use to buy supplies, into a separate company. The separated company would include ODP's business solutions division and Canadian office supplies retailer Grand & Toy.
The new company will also own ODP's regional office supply distribution businesses, it said.