Lexmark International Inc. (NYSE:LXK) delivered a profit 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. Shares are up 14%.
Lexmark International Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 16.19% to $0.88 in the quarter versus EPS of $1.05 in the year-earlier quarter.
Revenue: Decreased 10.9% to $884.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Lexmark International Inc. reported adjusted EPS income of $0.88 per share. By that measure, the company beat the mean analyst estimate of $0.87. It beat the average revenue estimate of $873.62 million.
Quoting Management: “In the first quarter, Lexmark delivered revenue and EPS at the high end of our guidance range, and we continued to grow our higher value segments,” said Paul Rooke, Lexmark chairman and chief executive officer. “We also remain focused on our transition from a hardware-centric to a solutions-centric company with the acquisitions of two software companies and the recently announced agreement to sell Lexmark’s inkjet-related technology and assets.”
Key Stats (on next page)…
Revenue decreased 8.59% from $967.4 million in the previous quarter. EPS increased 2.33% from $0.86 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.90 to a profit $0.89. For the current year, the average estimate has moved down from a profit of $3.89 to a profit of $3.80 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)