The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Lexmark International beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Lexmark International chalked up revenue of $968.0 million. The nine analysts polled by S&P Capital IQ looked for revenue of $932.8 million on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $1.06 billion.
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 $0.61. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.89 per share. GAAP EPS of $0.10 for Q4 were 89% lower than the prior-year quarter's $0.94 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 34.1%, 370 basis points worse than the prior-year quarter. Operating margin was 3.4%, 760 basis points worse than the prior-year quarter. Net margin was 0.7%, 580 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $877.7 million. On the bottom line, the average EPS estimate is $0.98.
Next year's average estimate for revenue is $3.49 billion. The average EPS estimate is $3.87.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 146 members out of 230 rating the stock outperform, and 84 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Lexmark International a green thumbs-up, and 25 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lexmark International is underperform, with an average price target of $20.78.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Lexmark International. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Lexmark International to My Watchlist.