The 10-second takeaway
For the quarter ended March 31 (Q1), Imation missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP loss per share improved.
Gross margins improved, operating margins shrank, and net margins contracted.
Imation booked revenue of $281.7 million. The one analyst polled by S&P Capital IQ looked for a top line of $295.0 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $316.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.33. The one earnings estimate compiled by S&P Capital IQ forecast -$0.14 per share. GAAP EPS were -$0.33 for Q1 against -$0.19 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.9%, 310 basis points better than the prior-year quarter. Operating margin was -2.7%, 210 basis points worse than the prior-year quarter. Net margin was -4.3%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $276.0 million. On the bottom line, the average EPS estimate is -$0.20.
Next year's average estimate for revenue is $1.18 billion. The average EPS estimate is -$0.46.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 105 members out of 118 rating the stock outperform, and 13 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Imation a green thumbs-up, and three give it a red thumbs-down.
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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.