OfficeMax Beats on EPS But GAAP Results Lag

OfficeMax (NYSE: OMX  ) reported earnings on Feb. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), OfficeMax missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted. GAAP earnings per share dropped to a loss.

Gross margins increased, operating margins contracted, net margins contracted.

Revenue details
OfficeMax tallied revenue of $1.70 billion. The 13 analysts polled by S&P Capital IQ hoped for a top line of $1.75 billion on the same basis. GAAP reported sales were 7.4% lower than the prior-year quarter's $1.84 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.16. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. Non-GAAP EPS of $0.16 for Q4 were 5.9% lower than the prior-year quarter's $0.17 per share. GAAP EPS were -$0.39 for Q4 against $0.03 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.4%, 90 basis points better than the prior-year quarter. Operating margin was -2.9%, 480 basis points worse than the prior-year quarter. Net margin was -2.0%, 220 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.87 billion. On the bottom line, the average EPS estimate is $0.26.

Next year's average estimate for revenue is $7.00 billion. The average EPS estimate is $0.82.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 175 members out of 312 rating the stock outperform, and 137 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give OfficeMax a green thumbs-up, and 38 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OfficeMax is hold, with an average price target of $10.25.

Is OfficeMax the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.

• Add OfficeMax to My Watchlist.