Lexmark International, Inc. Earnings Cheat Sheet: Tops Analysts’ Expectations

S&P 500 (NYSE:SPY) component Lexmark International, Inc. (NYSE:LXK) reported net income above Wall Street’s expectations for the second quarter. Lexmark International Inc. develops and manufactures printing and imaging products and solutions for offices and homes.

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Lexmark International Earnings Cheat Sheet for the Second Quarter

Results: Net income for the computer based systems company rose to $101.3 million ($1.27 per share) vs. $85.1 million ($1.07 per share) in the same quarter a year earlier. This marks a rise of 19% from the year earlier quarter.

Revenue: Rose 1.1% to $1.04 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: LXK reported adjusted net income of $1.36 per share. By that measure, the company beat the mean estimate of $1.02 per share. It beat the average revenue estimate of $1.01 billion.

Quoting Management: “Record EPS, a very strong operating income margin, and better than expected revenue performance highlighted Lexmark’s second quarter financial results,” said Paul Rooke, Lexmark chairman and chief executive officer. “We saw continued revenue growth in our strategic focus areas with core supplies at a double digit rate, and managed print services at a rate of more than 25 percent. “We also announced new software solutions and strengthened our workgroup color lineup to help business customers capture, manage and access their content more easily and affordably,” stated Rooke. “Lexmark continues to maintain a strong financial position with a solid balance sheet, good liquidity and a long history of cash generation, and we remain focused on increasing shareholder value.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of $1.14 versus a mean estimate of net income of $1.24 per share.

The increase in profit last quarter comes after net income fell in the previous quarter. In the first quarter, net income declined 12.6% to $83.3 million.

Gross margins grew 2.8 percentage points to 39.6%. The growth appeared to be driven by falling costs, as the figure fell 3.4% from the year earlier while revenue rose 1.1%.

Revenue rose last quarter after seeing a drop the quarter before. Revenue fell 0.8% to $1.03 billion in the first quarter from the year earlier.

Competitors to Watch: Canon Inc. (NYSE:CAJ), Hewlett-Packard Company (NYSE:HPQ), Xerox Corporation (NYSE:XRX), Dell Inc. (NASDAQ:DELL), Synaptics, Incorporated (NASDAQ:SYNA), Immersion Corporation (NASDAQ:IMMR), Hauppauge Digital, Inc. (NASDAQ:HAUP), EMC Corporation (NYSE:EMC), Ricoh Company Ltd. (RICOY), and Logitech Intl. SA (NASDAQ:LOGI).

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(Source: Xignite Financials)