Lexmark's Profits Grow, But Miss Expectations - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Business & Finance

Lexmark's Profits Grow, But Miss Expectations

The printer maker's net income grew 14%, but came up a penny short of Wall Street's expectations.

NEW YORK (AP) -- Lexmark International Inc. on Monday posted a 14 percent surge in second-quarter net income, as sales of laser and inkjet supplies rose.

However, the results fell short of Wall Street's expectations.

The Lexington, Ky., printer maker said net income rose to $101.7 million, or 77 cents a diluted share, during the quarter, from $89.1 million, or 67 cents a diluted share, a year ago.

A Thomson First Call survey of analysts produced an earnings projection for the quarter of 78 cents a share.

Revenue for the quarter rose 6 percent to $1.12 billion from $1.06 billion.

Revenue from laser and ink-jet supplies rose 11 percent to $630 million from $566 million and now represents 56 percent of total revenue, up from 54 percent last year.

Printer sales rose 2 percent to $400 million from $394 million.

Looking forward, for the third quarter, Lexmark expects earnings per share of 63 cents to 73 cents, which is below a First Call estimate of 80 cents. The company also sees revenue growth for the quarter, in percentage terms, in the low to middle single digits.

Chairman and chief executive Paul J. Curlander said the company is in "good position" for the second half of the year. But, he added, "We continue to be cautious ... due to softness in corporate and consumer spending, and aggressive pricing competition."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Future IT Teams Will Include More Non-Traditional Members
Lisa Morgan, Freelance Writer,  4/1/2020
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Register for InformationWeek Newsletters
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll