Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of OfficeMax (NYS: OMX) jumped as much as 22% today as investors breathed a sigh of relief that the company wasn't headed for a cliff.
So what: It isn't like the quarter was a blowout, but with expectations already in the circular file, OfficeMax easily surpassed what investors were expecting. Sales were down slightly, to $1.65 billion, and adjusted earnings per share of $0.07 were a nice profit when Wall Street was just hoping the company could break even.
Now what: Suppliers of office products have been hit by increased competition and weaker demand in recent years, so a leveling of results instead of a decline is actually worth cheering today. OfficeMax, Staples (NAS: SPLS) , and particularly Office Depot (NYS: ODP) have been trudging through the past few years looking for a bottom, and today investors are hoping they've found it. I'm not excited enough about a $0.07-per-share profit to buy shares today, but it could be a good long-term sign for the economy.
Interested in more info on OfficeMax? Add it to your watchlist.
At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Motley Fool newsletter services have recommended buying shares of Staples. Motley Fool newsletter services have recommended writing naked calls in Office Depot. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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