The 10-second takeaway
For the quarter ended March 31 (Q1), Lexmark International met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins shrank, and net margins dropped.
Lexmark International notched revenue of $992.5 million. The nine analysts polled by S&P Capital IQ anticipated net sales of $987.4 million on the same basis. GAAP reported sales were 4.1% lower than the prior-year quarter's $1.03 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.05. The 11 earnings estimates compiled by S&P Capital IQ predicted $1.04 per share on the same basis. GAAP EPS of $0.84 for Q1 were 19% lower than the prior-year quarter's $1.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.4%, 70 basis points better than the prior-year quarter. Operating margin was 9.5%, 170 basis points worse than the prior-year quarter. Net margin was 6.1%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $983.9 million. On the bottom line, the average EPS estimate is $1.14.
Next year's average estimate for revenue is $4.00 billion. The average EPS estimate is $4.62.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 152 members out of 227 rating the stock outperform, and 75 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Lexmark International a green thumbs-up, and 16 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 $33.78.
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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.