Lexmark Intl Earnings: Beats Profit Estimate, Misses Revenue Estimate

S&P 500 (NYSE:SPY) component Lexmark International Inc. (NYSE:LXK) reported its results for the third quarter. Lexmark International develops and manufactures printing and imaging products and solutions for offices and homes.

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Lexmark International Inc. Earnings Cheat Sheet

Results: Net income for the company was $0.0 (0 cents per share) vs. $67 million (86 cents per share) the year earlier.

Revenue: Fell 11.2% to $919 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lexmark International Inc. reported adjusted net income of 94 cents per share. By that measure, the company beat the mean estimate of 90 cents per share. It fell short of the average revenue estimate of $941.2 million.

Quoting Management: “Our third quarter financial results were highlighted by solid free cash flow generation and ongoing growth in Perceptive Software and managed print services revenue,” said Paul Rooke, Lexmark chairman and chief executive officer. “Even with the ongoing economic weakness we are seeing, particularly in Europe, revenue for the quarter was in line with the guidance we provided in July, and non-GAAP EPS were about flat year to year and exceeded that guidance.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 12% to $918.6 million in the second quarter. The figure fell 4.1% in the first quarter from the year earlier and dropped 4% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the second quarter with net income of $1.05 per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.10 a share to 97 cents over the last ninety days. The average estimate for the fiscal year is $4.16 per share, down from $4.54 ninety days ago.

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

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