OfficeMax Earnings Cheat Sheet: Profit Streak Snapped by a Loss
OfficeMax Incorporated (NASDAQ:OMX) reported its results for the second quarter. 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 Second Quarter
Results: Swung to a loss of $2.5 million (4 cents per diluted share) in the quarter. The specialty retail company had net income of $12.4 million or 14 cents per share in the year earlier quarter.
Revenue: Fell 0.3% to $1.65 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: OMX reported adjusted net income 7 cents per share. By that measure, the company beat analysts estimates of breaking even. Analysts were expecting revenue of $1.64 billion.
Quoting Management: Ravi Saligram, President and CEO of OfficeMax, said, “We continued to experience top line softness as a result of the difficult macroeconomic environment but have made progress on gross margin initiatives. We remain focused on executing the fundamentals better, enhancing the management team and improving the operations of the business.”
Revenue has fallen in the past four quarters. Revenue declined 2.8% to $1.86 billion in the first quarter. The figure fell 2.4% in the fourth quarter of the last fiscal year from the year earlier and dropped 1% in the third quarter of the last fiscal year from the year-ago quarter.
OMX’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $11.9 million in the first quarter, a profit of $12.7 million in the fourth quarter of the last fiscal year and $20.5 million in the third of the last fiscal year.
The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 13 cents versus a mean estimate of net income of 27 cents per share.
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), and Papelaria Fernandes – Indust. e Comer.SA (PFEAP).
(Source: Xignite Financials)