Lexmark's Profits Grow, But Miss Expectations - InformationWeek

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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."

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