Does The Street Have OfficeMax Figured Out?

OfficeMax (NYSE: OMX  ) is expected to report Q4 earnings around Feb. 22. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict OfficeMax's revenues will decrease -4.4% and EPS will compress -17.6%.

The average estimate for revenue is $1.76 billion. On the bottom line, the average EPS estimate is $0.14.

Revenue details
Last quarter, OfficeMax reported revenue of $1.74 billion. GAAP reported sales were 1.7% lower than the prior-year quarter's $1.77 billion.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.27. GAAP EPS of $4.92 for Q3 were much higher than the prior-year quarter's $0.25 per share.

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

Recent performance
For the preceding quarter, gross margin was 26.4%, 50 basis points better than the prior-year quarter. Operating margin was 2.5%, 20 basis points better than the prior-year quarter. Net margin was 24.8%, 2,360 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $6.98 billion. The average EPS estimate is $0.75.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 179 members out of 312 rating the stock outperform, and 133 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give OfficeMax a green thumbs-up, and 34 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 $7.83.

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