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. Shares are up 2.05%.
OfficeMax Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 52.17% to $0.11 in the quarter versus EPS of $0.23 in the year-earlier quarter.
Revenue: Decreased 5.65% to $1.77 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: OfficeMax Inc. reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.23. It missed the average revenue estimate of $1.83 billion.
Quoting Management: “We experienced a challenging first quarter, with a sales decline that reflected weak macroeconomic conditions and continued industry declines in technology sales,” said Ravi Saligram, President and CEO of OfficeMax. “We will continue to drive gross margin improvement and have put in place a significant cost reduction plan that should improve results in the second half of the year.”
Key Stats (on next page)…
Revenue increased 3.91% from $1.7 billion in the previous quarter. EPS decreased 31.25% from $0.16 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 $0.13 to a profit $0.12. For the current year, the average estimate has moved down from a profit of $0.83 to a profit of $0.8 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)