Imation Earnings: Here’s What You Need to Know Now

Imation Corp. (NYSE:IMN) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Imation Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.14 in the quarter versus EPS of $-0.40 in the year-earlier quarter.

Revenue: Decreased 12.62% to $299.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Imation Corp. reported adjusted EPS loss of $-0.14 per share. By that measure, the company beat the mean analyst estimate of $-0.43. It beat the average revenue estimate of $285 million.

Quoting Management: CEO Mark Lucas said, “Imation’s opportunity for higher margin, differentiated products is in our Secure and Scalable Storage portfolio which grew 16.7 percent in the fourth quarter and rose to 21 percent of total revenues, up from 15.7 percent a year earlier. With our recently announced purchase of Nexsan, we expect to derive more revenue from this category in the future. As anticipated, our audio and video information category declined 23.6 percent and will drop further given the divestitures we are announcing today. We have discussed previously that our traditional storage business is in secular decline; therefore, we are acting with urgency to reduce our cost structure and transform Imation into a company focused on high growth markets in data storage and data security.”

Key Stats (on next page)…

Revenue increased 20.51% from $248.2 million in the previous quarter. EPS increased to $-0.14 in the quarter versus EPS of $-0.17 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.11 to a loss $0.07. For the current year, the average estimate is a loss of $1.24, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)