OfficeMax Earnings: Profit Slides Big
OfficeMax Incorporated (NYSE:OMX) reported its results for the first quarter. OfficeMax provides office supplies and paper, print, and document services, technology products, and furniture to businesses, government offices, and consumers.
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OfficeMax Incorporated Earnings Cheat Sheet for the First Quarter
Results: Net income for OfficeMax Incorporated fell to $4.9 million (23 cents per share) vs. $11.4 million (13 cents per share) a year earlier. This is a decline of 57% from the year-earlier quarter.
Revenue: Rose 0.5% to $1.87 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: OfficeMax Incorporated beat the mean analyst estimate of 16 cents per share. Analysts were expecting revenue of $1.87 billion.
Quoting Management: “We are off to a good start in 2012 and the team delivered solid first quarter results,” said Ravi Saligram, President and CEO of OfficeMax. “We are making steady progress in executing the early stages of our strategic plan.”
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by one cent in the fourth quarter of the last fiscal year, by one cent in the third quarter of the last fiscal year, and by 7 cents in the second quarter of the last fiscal year.
Margins rose in the fourth quarter of the last fiscal year after falling the quarter before. Gross margins grew to 25.8%, up 0.3 percentage point from the year-earlier quarter. In the third quarter of the last fiscal year, the figure rose 0.7 percentage point to 24.5% from the year earlier quarter.
The company’s revenue has now risen for two straight quarters. In the fourth quarter of the last fiscal year, revenue increased 3.9% to $1.84 billion from the year-earlier quarter.
Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to 6 cents per share from 5 cents. The average estimate for the fiscal year is 61 cents per share, a rise from 57 cents ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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