Thursday's Winners & Losers: OfficeMax

The retailer's earnings more than double Wall Street's forecast.
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Shares of

OfficeMax

(OMX)

were among the

NYSE's

winners Thursday, jumping 11% after the office-supplies retailer posted second-quarter earnings that were more than double Wall Street's forecast.

OfficeMax earned $26.4 million, or 35 cents a share. Excluding items, the company earned $23 million, or 29 cents a share. Analysts expected earnings of 14 cents a share. OfficeMax posted sales of $2.04 billion, while same-store sales at its retail segment fell 1%. During the year-earlier period, the company posted an adjusted loss of $10.2 million, or 14 cents a share, on revenue of $2.09 billion.

"In our contract segment, through a continued focus on profitable sales and cost efficiencies, we achieved significant operating income growth," the company said. "In our retail segment, significantly lower inventory clearance activity, reduced shrinkage, and cost controls provided strong operating income improvement." OfficeMax now sees full-year operating income margin of 3% to 3.5%, up from an earlier view of 2% to 2.5%. Shares were trading up $4.17 to $43.49.

Shares of

Heartland Payment Systems

(HPY)

rose 12% after the provider of credit card processing services posted better-than-expected second-quarter earnings. The company earned $7.4 million, or 19 cents a share, on revenue of $278.1 million. Analysts polled by Thomson First Call expected earnings of 17 cents a share and revenue of $275.2 million. During the year-earlier period, Heartland earned $4.4 million, or 12 cents a share, on revenue of $209.7 million. "Results this quarter were driven by record merchant processing volumes, which grew 29% over the year ago period and reached almost $11 billion in the second quarter," the company said.

Heartland expects full-year adjusted earnings of 74 cents to 78 cents a share on revenue growth of 28% to 30%. Analysts project earnings of 71 cents a share on revenue of $1.1 billion. Shares were trading up $2.84 to $26.82.

Marsh & McLennan

(MMC) - Get Report

slid 7% after the financial services firm posted weaker-than-expected second-quarter earnings. The company reported earnings from continuing operations of $173 million, or 31 cents a share, including one-time items that cut profits by $46 million, or 5 cents a share. Analysts expected earnings of 44 cents a share. Marsh recorded total revenue of $2.98 billion, compared with Wall Street's forecast of $2.99 billion. A year earlier, earnings from continuing operations were $160 million, or 30 cents a share, on revenue of $2.98 billion.

"Results for the quarter were mixed. Marsh achieved significant improvement in both operating margin and new business development, particularly in North America, which had improved retention rates from last year," the company said. "However, underlying revenues in Europe did not meet expectations, due primarily to lower client retention levels." Shares were trading down $1.84 to $25.05.

DRS Technologies

(DRS)

sank 15% after the military contractor posted in-line first-quarter earnings but slashed its full-year forecast. For the quarter ended June 30, the company earned $21.3 million, or 52 cents a share, on revenue of $630.3 million. Analysts expected earnings of 52 cents a share on revenue of $624.3 million. During the year-earlier period, the company earned $14 million, or 49 cents a share, on revenue of $338.5 million.

DRS now sees full-year earnings of $2.80 to $2.90 a share, below its earlier guidance of $3.05 to $3.10. The company lowered its revenue projection to $2.7 billion to $2.75 billion from a prior view of $2.9 billion. Analysts project earnings of $3.15 a share and revenue of $2.93 billion. DRS said the lower guidance reflects "government funding delays and the constraints and scale-backs in the U.S. Army's operations and maintenance budget, which recently became apparent." Shares were trading down $6.70 to $40.10.

Shares of

Cooper Tire & Rubber

(CTB) - Get Report

slid 8% after the company posted a wider-than-expected second-quarter loss and announced the resignation of its chief executive. The company's loss swelled to $20.7 million, or 34 cents a share, from $6.9 million, or 11 cents a share, a year earlier. Analysts expected a much smaller loss of 7 cents a share. Sales rose to $624.8 million from $510.9 million. "Extraordinarily weak replacement tire demand in the North American market and the resultant high inventories prompted the company to reduce production during the quarter, resulting in $8 million in unabsorbed overhead expense," the company said.

Separately, Cooper said CEO Thomas Dattilo is leaving to pursue another opportunity. Byron Pond, a member of Cooper's board, will replace Dattilo on an interim basis until a permanent replacement is found. Shares were trading down 60 cents to $9.40.

NYSE volume leaders included

Sprint Nextel

(S) - Get Report

, down $2.89 to $17.24;

Medtronic

(MDT) - Get Report

, down $6.23 to $44.70;

Qwest Communications

(Q)

, down 4 cents to $8.71;

Lucent Technologies

(LU)

, down 3 cents to $2.07;

Ford

(F) - Get Report

, down 12 cents to $6.84;

Boston Scientific

(BSX) - Get Report

, down $1.38 to $16.24; and

Pfizer

(PFE) - Get Report

, down 1 cent to $25.60.

Nasdaq

volume leaders included

Starbucks

(SBUX) - Get Report

, down $3.26 to $30.04;

Cisco Systems

(CSCO) - Get Report

, down 18 cents to $17.30;

Intel

(INTC) - Get Report

, down 16 cents to $17.33;

Sirius Satellite Radio

(SIRI) - Get Report

, down 6 cents to $3.96;

Apple Computer

(AAPL) - Get Report

, up $1 to $69.16;

Microsoft

(MSFT) - Get Report

, up 4 cents to $24.34;

Level 3 Communications

(LVLT)

, down 7 cents to $3.70;

eBay

(EBAY) - Get Report

, up $1 to $23.99; and

Sun Microsystems

(SUNW) - Get Report

, up 4 cents to $4.33.