Can Canon Meet These Numbers?

Canon (NYSE: CAJ  ) is expected to report Q4 earnings on Jan. 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Canon's revenues will decrease -9.2% and EPS will grow 22.2%.

The average estimate for revenue is $11.39 billion. On the bottom line, the average EPS estimate is $0.77.

Revenue details
Last quarter, Canon booked revenue of $10.27 billion. GAAP reported sales were 14% lower than the prior-year quarter's $11.89 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.54. GAAP EPS of $0.55 for Q3 were 35% lower than the prior-year quarter's $0.84 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 48.3%, 110 basis points worse than the prior-year quarter. Operating margin was 8.9%, 450 basis points worse than the prior-year quarter. Net margin was 6.3%, 220 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $41.04 billion. The average EPS estimate is $2.28.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 480 members out of 501 rating the stock outperform, and 21 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 146 give Canon a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Canon is underperform, with an average price target of $38.55.

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