Lexmark International Fourth Quarter Earnings Sneak Peek

Lexmark International Inc (NYSE:LXK) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. 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 analyst estimate is for net income of 91 cents per share, a decline of 27.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 90 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. For the year, analysts are projecting profit of $3.79 per share, a decline of 19.5% from last year.

Last quarter, the company came in at net income of 94 cents per share against a mean estimate of profit of 78 cents per share, beating estimates after missing them in the previous quarter. In the second quarter, it missed forecasts by one cent.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

Revenue fell 11.2% to $919.2 million from $1.03 billion.

Here’s how Lexmark International traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

lxk

Stock Price Performance: Between October 25, 2012 and January 23, 2013, the stock price rose $6.45 (29.7%), from $21.73 to $28.18. The stock price saw one of its best stretches over the last year between October 10, 2012 and October 18, 2012, when shares rose for seven straight days, increasing 5.7% (+$1.19) over that span. 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.

Wall St. Revenue Expectations: Analysts predict a decline of 11.9% in revenue from the year-earlier quarter to $934 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 4% in the fourth quarter of the last fiscal year, 4.1% in first quarter and 12% in the second quarter and then fell again in the third quarter.

Analyst Ratings: With six analysts rating the stock a sell, none rating it as a buy and three 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 1.33 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. The company regressed in this liquidity measure from 1.42 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5% to $1.44 billion while assets decreased 1.4% to $1.92 billion.

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 by Xignite Financials. Earnings estimates provided by Zacks)