Lexmark International, Inc. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Lexmark International, Inc. (NYSE:LXK) will unveil its latest earnings on Tuesday, July 26, 2011. Lexmark International Inc. develops and manufactures printing and imaging products and solutions for offices and homes. Xerox Corp Second Quarter Earnings Sneak Peek>>

Lexmark International, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.02 per share, a decline of 17.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.14. Between one and three months ago, the average estimate moved down, but it has been unchanged at $1.02 during the last month. For the year, analysts are projecting net income of $4.27 per share, a decline of 13.9% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of $1.14 per share versus a mean estimate of net income of $1.24 per share. In fourth quarter of the last fiscal year, the company beat estimates by 18 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.01 billion in revenue this quarter, a decline of 2.9% from the year ago quarter. Analysts are forecasting total revenue of $4.13 billion for the year, a decline of 1.9% from last year’s revenue of $4.21 billion.

Analyst Ratings: Analysts are bearish on Lexmark International as four analysts rate it as a sell, three rate it as a buy and five rate it as a hold.

Key Stats:

A year-over-year revenue decrease in the first quarter snaps a streak of three consecutive quarters of revenue increases. Revenue fell 0.8% in the first quarter and rose 2.9%in the fourth quarter of the last fiscal year, 6.4% in the third quarter of the last fiscal year and 14.2% in the second quarter of the last fiscal year.

The decrease in profit in the first quarter breaks a streak of three consecutive quarters of year-over-year profit increases. Net income fell 12.6% in the first quarter from the year earlier, while the figure rose 46.7% in the fourth quarter of the last fiscal year, more than sevenfold in the third quarter of the last fiscal year and more than fivefold in the second quarter of the last fiscal year.

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), and Logitech Intl. SA (NASDAQ:LOGI).

Stock Price Performance: During April 25, 2011 to July 20, 2011, the stock price had fallen $9.22 (-24.1%) from $38.29 to $29.07. The stock price saw one of its best stretches over the last year between June 10, 2011 and June 21, 2011 when shares rose for eight-straight days, rising 6.5% (+$1.75) over that span. It saw one of its worst periods between November 8, 2010 and November 16, 2010 when shares fell for seven-straight days, falling 8.5% (-$3.35) over that span. Shares are down $5.75 (-16.5%) year to date.

(Source: Xignite Financials)

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