Lexmark breaks even in 3Q, revenue down
LEXINGTON, Ky. -- Lexmark International broke even in the third quarter both in per-share and dollar terms _ a sharp decline from a profit a year earlier due to restructuring and acquisition-related charges.
But the results surpassed Wall Street expectations and the printing company's stock jumped 5 percent in morning trading.
In the July-September period a year ago, Lexmark earned $67 million, or 86 cents per share.
Adjusted earnings were 94 cents per share in the latest quarter, compared with 95 cents per share a year earlier.
Revenue fell 11 percent to $919.2 million from $1.03 billion, hurt by lower demand, especially in Europe.
Analysts, on average, were expecting adjusted earnings of 78 cents per share on revenue of $912 million, according to a poll by FactSet.
Lexmark is in the process of exiting its inkjet printer business and announced last quarter that it will lay off 1,700 workers _ the source of much of the quarter's restructuring charges.
Paper printing is being pushed aside by digital devices and online photo albums. Instead of the inkjet printers, which were used mostly by individual customers, Lexmark plans to focus on higher-end printers aimed at offices and customers that still use a lot of paper, such as advertisers and catalog publishers.
For the current quarter, Lexmark is forecasting earnings of 17 to 27 cents per share, down from 94 cents per share a year earlier. It expects adjusted earnings of 82 to 92 cents per share. Analysts are expecting $1.03 per share.
The company expects revenue to decline by 10 percent to 12. Analysts are forecasting $934.1 million, a decline of nearly 12 percent.
Shares of Lexmark International Inc. climbed $1.08 to $22.73 in morning trading. The stock has traded in the 52-week range of $16.10 and $38.24.