OfficeMax Incorporated Earnings Cheat Sheet: Profit Rises Year Over Year

Falling revenue did not prevent OfficeMax Incorporated (NYSE:OMX) from reporting a profit boost in the third 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 Third Quarter

Results: Net income for OfficeMax Incorporated rose to $22 million (25 cents per share) vs. $20.5 million (23 cents per share) in the same quarter a year earlier. This marks a rise of 7.3% from the year earlier quarter.

Revenue: Fell 2.1% to $1.77 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: OMX beat the mean analyst estimate of 24 cents per share. Analysts were expecting revenue of $1.8 billion.

Quoting Management: “In the quarter, we maintained our profit margins in a tough economic climate and a soft Back-to-School season,” said Ravi Saligram, President and CEO of OfficeMax. “With our new senior management team largely in place, we remain focused on driving operational efficiencies as we position the company for long-term growth.”

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 0.3% to $1.65 billion in the second quarter. The figure fell 2.8% in the first quarter from the year earlier and dropped 2.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 7 cents versus a mean estimate of 0 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 25 cents per share to 23 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is 67 cents per share, a rise from 63 cents ninety days ago.

Competitors to Watch: Staples, Inc. (NASDAQ:SPLS), Office Depot, Inc. (NYSE:ODP), Walgreens (NYSE:WAG), CVS (NYSE:CVS), United Stationers Inc. (NASDAQ:USTR), Inc. (NASDAQ:STMP), Wal-Mart (NYSE:WMT) and Target (NYSE:TGT).

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(Source: Xignite Financials)