The 10-second takeaway
For the quarter ended March 31 (Q1), Lexmark International beat slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Lexmark International chalked up revenue of $884.3 million. The nine analysts polled by S&P Capital IQ expected net sales of $872.1 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $992.5 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 $0.88. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.86 per share. Non-GAAP EPS of $0.88 for Q1 were 16% lower than the prior-year quarter's $1.05 per share. GAAP EPS of $0.54 for Q1 were 36% lower than the prior-year quarter's $0.84 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 38.7%, 20 basis points worse than the prior-year quarter. Operating margin was 6.5%, 370 basis points worse than the prior-year quarter. Net margin was 3.9%, 220 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $853.8 million. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $3.48 billion. The average EPS estimate is $3.85.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 142 members out of 227 rating the stock outperform, and 85 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 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 $20.71.
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