Openheimer Reports Uncertain Near-Term Outlook On OfficeMax

According to Oppenheimer, OfficeMax OMX near-term outlook is still uncertain. Oppenheimer said that last week it traveled with OfficeMax senior management to meet investors in Europe. “OMX does not comment on trends intra-quarter. The company recently reported Q1 (Mar.) results that fell short of Street expectations and suggested incremental weakness in the business over the past few months. Management remains upbeat on longer term prospects for OMX. New CEO Ravi Saligram indicates that he continues to see significant potential for OMX to better serve key customers with a broader array of higher margin services and reiterates that operating margins at the chain should over time gravitate back toward prior peaks. The macro environment is quite challenging near term. We do not foresee OMX shares trading meaningfully higher absent clear evidence of improving sales trends.” OfficeMax closed yesterday at $8.96.