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Are You Expecting This from Lexmark International?

By Seth Jayson - Updated Apr 10, 2017 at 1:49PM

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Checking expectations

Lexmark International (NYSE: LXK) is expected to report Q1 earnings on April 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Lexmark International's revenues will drop -12.1% and EPS will wane -18.1%.

The average estimate for revenue is $872.1 million. On the bottom line, the average EPS estimate is $0.86.

Revenue details
Last quarter, Lexmark International booked revenue of $968.0 million. 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 details
Last quarter, non-GAAP EPS came in at $0.61. 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.

Recent performance
For the preceding quarter, gross margin was 35.3%, 250 basis points worse than the prior-year quarter. Operating margin was 6.6%, 440 basis points worse than the prior-year quarter. Net margin was 0.7%, 580 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $3.45 billion. The average EPS estimate is $3.83.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 142 members out of 228 rating the stock outperform, and 86 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Lexmark International a green thumbs-up, and 23 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.

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Stocks Mentioned

Lexmark International, Inc. Stock Quote
Lexmark International, Inc.
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