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.
If you're invested in retailers like OfficeMax, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add OfficeMax to My Watchlist.
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. The Motley Fool has no positions in the stocks mentioned above. 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.