OfficeMax Inc. (NYSE:OMX) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
OfficeMax Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 83.33% to $0.02 in the quarter versus EPS of $0.12 in the year-earlier quarter.
Revenue: Decreased 4.33% to $1.53 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: OfficeMax Inc. reported adjusted EPS income of $0.02 per share. By that measure, the company missed the mean analyst estimate of $0.03. It missed the average revenue estimate of $1.55 billion.
Quoting Management: “Sales declined in the second quarter, which impacted profitability compared to the prior year period. We continue to implement cost reduction measures to align our expenses with our revenue base and expect second-half profit performance to improve versus the first half. Further, we’re pleased to have received additional cash proceeds from our Boise investment in July, bolstering our strong balance sheet,” said Ravi Saligram, President and CEO of OfficeMax. “In spite of secular challenges and an uneven economic recovery, we remain committed to restoring sales growth by evolving our business model to focus more on services, innovating new products and categories, growing our adjacencies, and building our omnichannel capabilities.”
Key Stats (on next page)…
Revenue decreased 13.23% from $1.77 billion in the previous quarter. EPS decreased 81.82% from $0.11 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.27 to a profit $0.26. For the current year, the average estimate has moved down from a profit of $0.64 to a profit of $0.57 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)