Piper Jaffray 1Q Earnings Preview for Office Max and Office Depot

Piper Jaffray released a first quarter earnings preview report for Office Depot and Office Max prior to the results being reported on Tuesday April 26th, and Thursday, April 28th. Office Max

has already “anticipated Q1 total sales and adjusted the operating margin to be significantly lower than Q1 in 2010.” The only reported problem which impacted early Q1 was the weather. Office Max has a target price of $21 and a rating of Overweight. Office Depot

has stated “lower sales, higher marketing costs, investment, cost pressures in International and weather disruptions” in early Q1 which accounts for lower expectations. Office Depot has a target price of $5 and a Neutral rating. On Thursday, Office Max closed at $12.89 and Office Depot at $4.24.