OfficeMax Inc. (NYSE: OMX) reported second-quarter earnings per share (EPS) of $0.12 and $1.6 billion in revenue before markets opened this morning. EPS surpassed last year’s total of $0.07, and revenue declined from last year’s second-quarter total of $1.65 billion by 2.7%. The results compare to the Thomson Reuters consensus estimates for EPS of $0.07 and $1.64 billion in revenue.
OfficeMax reinstated a quarterly dividend of $0.02, with the first payment scheduled for August 31. The company suspended its dividend in the fourth quarter of 2008.
The office supply retailer expects third-quarter revenue to be flat or slightly higher than the same period a year ago, when revenue totaled $1.77 billion. OfficeMax also expects third-quarter adjusted operating income margin of 2.3%, in line with last year’s number. For the full-fiscal year, the company expects revenues in line with the 2011 total of $7.12 billion. That total includes an unfavorable impact from currency translation and excludes a comparison with the extra week of sales in 2011. The current consensus estimate for the third quarter calls for EPS of $0.24 on revenue of $1.79 billion. For the full fiscal year, the consensus estimate calls for EPS of $0.67 on revenue of $7.08 billion.
The company’s president and CEO had this to say:
As we gain traction in executing against our strategic plan, we are evaluating options for capital allocation to enhance shareholder value. As a first step, we are pleased to reinstate a quarterly dividend which reflects the progress we are making, and our confidence in the future of OfficeMax.
For the quarter, retail sales fell 5.7% compared with the same period a year ago. Same-store sales fell 1.85, which the company blamed on currency exchanges and fewer store transactions. Gross profits fell slightly to 29.5% and operating expenses rose slightly. In OfficeMax’s contract segment, sales fell 0.2%, primarily due to drop of 6% in international sales.
Shares are inactive in premarket trading this morning, but closed down 5.1% yesterday at $4.26. The current 52-week range is $3.90 to $8.82. Thomson Reuters had a consensus analyst price target of $7.50 before today’s results were announced.
Paul Ausick
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
