OfficeMax Third Quarter Earnings Sneak Peek

OfficeMax Incorporated (NYSE:OMX) will unveil its latest earnings on Tuesday, November 6, 2012. OfficeMax provides office supplies and paper, print, and document services, technology products, and furniture to businesses, government offices, and consumers.

OfficeMax Incorporated Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 26 cents per share, a rise of 4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 25 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. For the year, analysts are projecting profit of 75 cents per share, a rise of 23% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting net income of 12 cents per share against a mean estimate of profit of 7 cents per share.

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A Look Back: In the second quarter, the company swung to a profit of $11.2 million (12 cents a share) from a loss of $2.5 million (4 cents) a year earlier, beating analyst estimates. Revenue fell 2.7% to $1.6 billion from $1.65 billion.

Stock Price Performance: Between August 7, 2012 and October 31, 2012, the stock price rose $2.18 (42.2%), from $5.17 to $7.35. The stock price saw one of its best stretches over the last year between August 23, 2012 and September 7, 2012, when shares rose for 11 straight days, increasing 23.3% (+$1.24) over that span. It saw one of its worst periods between February 28, 2012 and March 7, 2012 when shares fell for seven straight days, dropping 14.6% (-85 cents) over that span.

Analyst Ratings: There are mostly holds on the stock with five of nine analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 0.5% in the first quarter and 3.9% in the fourth quarter of the last fiscal year before falling in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.04 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Wall St. Revenue Expectations: Analysts predict a rise of 0.6% in revenue from the year-earlier quarter to $1.78 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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