The 10-second takeaway
For the quarter ended June 30 (Q2), OfficeMax missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share expanded.
Gross margins contracted, operating margins grew, and net margins expanded.
OfficeMax reported revenue of $1.60 billion. The nine analysts polled by S&P Capital IQ looked for net sales of $1.64 billion on the same basis. GAAP reported sales were 2.7% lower than the prior-year quarter's $1.65 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.12. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.07 per share. GAAP EPS were $0.12 for Q2 against -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.6%, 20 basis points worse than the prior-year quarter. Operating margin was 1.4%, 70 basis points better than the prior-year quarter. Net margin was 0.7%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.79 billion. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $7.04 billion. The average EPS estimate is $0.70.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 174 members rating the stock outperform and 120 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give OfficeMax a green thumbs-up, and 32 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OfficeMax is hold, with an average price target of $7.67.
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