The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Canon missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped.
Gross margins dropped, operating margins contracted, net margins were steady.
Canon booked revenue of $11.00 billion. The 10 analysts polled by S&P Capital IQ anticipated revenue of $11.39 billion on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $12.54 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 $0.58. The one earnings estimate compiled by S&P Capital IQ averaged $0.77 per share. GAAP EPS of $0.61 for Q4 were 7.6% lower than the prior-year quarter's $0.66 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 45.4%, 220 basis points worse than the prior-year quarter. Operating margin was 8.2%, 160 basis points worse than the prior-year quarter. Net margin was 6.4%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $8.95 billion.
Next year's average estimate for revenue is $40.92 billion. The average EPS estimate is $2.63.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 480 members out of 500 rating the stock outperform, and 20 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 146 give Canon a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Canon is underperform, with an average price target of $36.37.
If you're interested in companies like Canon, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.
- Add Canon to My Watchlist.