The 10-second takeaway
For the quarter ended Dec. 31 (Q4), OfficeMax beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Margins shrank across the board.
OfficeMax tallied revenue of $1.84 billion. The 12 analysts polled by S&P Capital IQ looked for net sales of $1.80 billion on the same basis. GAAP reported sales were 3.9% higher than the prior-year quarter's $1.77 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.17. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.15 per share on the same basis. GAAP EPS of $0.03 for Q4 were 79% lower than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.5%, 80 basis points worse than the prior-year quarter. Operating margin was 1.3%, 150 basis points worse than the prior-year quarter. Net margin was 0.2%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.86 billion. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $7.05 billion. The average EPS estimate is $0.58.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 173 members out of 295 rating the stock outperform, and 122 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 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 $8.05.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We 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.