Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: After reporting first-quarter earnings, OfficeMax (NYSE: OMX) caught fire this morning and burned to the ground. After a 20% loss, investors are opening their portfolio statements to find nothing but ash remaining.

So what: It's hard to overstate the damage here, folks. While OfficeMax avoided losing money, as we saw at Office Depot (NYSE: ODP) Tuesday, a mere 3% decline in revenue devastated its profits. Net earnings for OfficeMax's first quarter in 2011 dropped an astonishing 53% year over year, as profit margins dwindled to almost nothing.

Now what: Management blamed the usual factors -- discounts, an unfavorable "product mix," and of course, "bad weather." But wherever you place the blame, the results were shockingly bad. OfficeMax fell more than 50% short of its earnings target for the quarter, and management gave precious little hope for better results in the current quarter. Revenue is only expected to be "flat" against last year's Q2, but if a 2.8% slip in revenue decimated Q1 profit, I can't imagine how merely flat revenue will salvage Q2. Even a 15-times-earnings valuation may not be cheap enough for this stock.

Will OfficeMax prove skeptics wrong and deliver a blockbuster quarter? Or will it become the next Blockbuster? Add it to your Watchlist and find out.

Fool contributor Rich Smith does not own (or short) shares of OfficeMax, but Office Depot is a Motley Fool Big Short short-sale selection and Alpha Newsletter Account, LLC has opened a short position on Office Depot. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.