OfficeMax Incorporated (NASDAQ:OMX) saw a decrease in net income in the first quarter, causing Wall Street to react with a 15.9% drop. OfficeMax Incorporated provides office supplies and paper, print and document services, technology products and solutions and furniture to large, medium and small businesses, government offices and consumers.
OfficeMax Incorporated Earnings Cheat Sheet for the First Quarter
Results: Net income for OfficeMax Incorporated fell to $11.9 million (13 cents/share) vs. $25.4 million (28 cents/share) a year earlier. A decline of 53.2% from the year earlier quarter.
Revenue: Fell 2.8% to $1.86 billion YoY.
Actual vs. Wall St. Expectations: OMX fell short of the mean analyst estimate of 27 cents/share. Estimates ranged from 23 cents per share to 30 cents per share.
Quoting Management: Ravi Saligram, President and CEO of OfficeMax, said, “First quarter sales were lower than the prior year quarter and adjusted operating income margin rate was significantly lower than the first quarter of 2010. We are disappointed with our start to the year. In recognition of current trends and upon a deeper evaluation of our existing capabilities, we have put in place strong actions, including significant cost mitigation programs to bring our expenses in-line with last year. We believe these actions should help drive improved performance.”
Over the last five quarters, revenue has fallen an average of 1.3% year over year. The biggest drop came in the most recent quarter, when revenue fell 2.8% from the year earlier quarter.
Today’s Performance: Shares are down over 15% in today’s trading.
Competitors to Watch: Staples, Inc. (NASDAQ:SPLS), Office Depot, Inc. (NYSE:ODP), China Stationery and Office Supply, Inc. (CSOF), Paper Warehouse Inc. (PWHSQ), United Stationers Inc. (NASDAQ:USTR), Stamps.com Inc. (NASDAQ:STMP), Tiimari Oyj (TII1V), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Walgreen (NYSE:WAG), CVS (NYSE:CVS) and Papelaria Fernandes – Indust. e Comer.SA (PFEAP).