The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Lexmark International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins dropped, net margins shrank.
Lexmark International chalked up revenue of $1.06 billion. The nine analysts polled by S&P Capital IQ predicted revenue of $1.05 billion. Sales were 4.0% lower than the prior-year quarter's $1.10 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.25. The 12 earnings estimates compiled by S&P Capital IQ predicted $1.16 per share on the same basis. GAAP EPS of $0.94 for Q4 were 15% lower than the prior-year quarter's $1.10 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 37.4%, 160 basis points better than the prior-year quarter. Operating margin was 9.2%, 80 basis points worse than the prior-year quarter. Net margin was 6.5%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $975.9 million. On the bottom line, the average EPS estimate is $1.13.
Next year's average estimate for revenue is $3.98 billion. The average EPS estimate is $4.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 157 members out of 231 rating the stock outperform, and 74 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Lexmark International a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lexmark International is hold, with an average price target of $33.20.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.