The 10-second takeaway
For the quarter ended Sep. 29 (Q3), OfficeMax missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share expanded significantly.
Margins grew across the board.
OfficeMax booked revenue of $1.74 billion. The 10 analysts polled by S&P Capital IQ predicted a top line of $1.78 billion on the same basis. GAAP reported sales were 1.7% lower 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.
EPS came in at $0.27. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $4.92 for Q3 were much higher than the prior-year quarter's $0.25 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 26.4%, 50 basis points better than the prior-year quarter. Operating margin was 2.6%, 30 basis points better than the prior-year quarter. Net margin was 24.8%, 2,360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.77 billion. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $7.03 billion. The average EPS estimate is $0.74.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 171 members out of 298 rating the stock outperform, and 127 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give OfficeMax a green thumbs-up, and 34 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 $7.83.
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