Lexmark Intl Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Lexmark International Inc (NYSE:LXK) will unveil its latest earnings on Tuesday, July 24, 2012. Lexmark International develops and manufactures printing and imaging products and solutions for offices and homes.

Lexmark International Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 90 cents per share, a decline of 33.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.11. Between one and three months ago, the average estimate moved down. It also has dropped from $1 during the last month. Analysts are projecting profit to rise by 11.7% versus last year to $4.16.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by 10 cents in the fourth quarter of the last fiscal year, the company fell in line with expectations by reporting net income of $1.05 per share last quarter.

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Stock Price Performance: Between April 23, 2012 and July 18, 2012, the stock price fell $12.56 (-38.6%), from $32.55 to $19.99. It saw one of its worst periods between May 9, 2012 and May 18, 2012 when shares fell for eight straight days, dropping 9.7% (-$2.82) over that span. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 9, 2012, when shares rose for six straight days, increasing 3.6% (+$1.20) over that span.

A Look Back: In the first quarter, profit fell 27% to $60.8 million (84 cents a share) from $83.3 million ($1.04 a share) the year earlier, meeting analyst expectations. Revenue fell 4.1% to $992.5 million from $1.03 billion.

Wall St. Revenue Expectations: On average, analysts predict $941.2 million in revenue this quarter, a decline of 9.5% from the year-ago quarter. Analysts are forecasting total revenue of $3.92 billion for the year, a decline of 6.2% from last year’s revenue of $4.18 billion.

Key Stats:

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 6.9% in the third quarter of the last fiscal year, by 20.9% in the fourth quarter of the last fiscal year and again in the first quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 4% in the fourth quarter of the last fiscal year and dropped again in the first quarter.

Analyst Ratings: With five analysts rating the stock a sell, none rating it as a buy and four rating it as a hold, there are indications of a bearish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.85 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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