The 10-second takeaway
For the quarter ended March 30 (Q1), OfficeMax missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share increased significantly.
Margins expanded across the board.
OfficeMax reported revenue of $1.77 billion. The nine analysts polled by S&P Capital IQ wanted to see revenue of $1.83 billion on the same basis. GAAP reported sales were 5.7% lower than the prior-year quarter's $1.87 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 $0.11. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. Non-GAAP EPS of $0.11 for Q1 were 52% lower than the prior-year quarter's $0.23 per share. GAAP EPS of $0.64 for Q1 were much higher than the prior-year quarter's $0.06 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 26.0%, 20 basis points better than the prior-year quarter. Operating margin was 5.8%, 350 basis points better than the prior-year quarter. Net margin was 3.2%, 290 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.59 billion. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $6.95 billion. The average EPS estimate is $0.79.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 175 members out of 302 rating the stock outperform, and 127 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 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 $11.73.
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