Computer printer maker Lexmark International said quarterly profit rose 7% but the results and its outlook missed Wall Street expectations, sending shares down more than 8%.
Sales of equipment Lexmark made for other brands continued to be weak in the first quarter, which also saw a decline in sales of inkjet supplies, and aggressive hardware pricing in the laser and inkjet markets, the company said.
It said net income for the quarter rose to $92.4 million, or 95 cents a share, from $86.2 million, or 78 cents a share, a year earlier.
Excluding one-time costs for restructuring, profit per share was 96 cents, missing the average $1.03 forecast by analysts, according to Thomson Financial.
Revenue fell 1% to $1.261 billion, in line with the $1.26 billion forecast by Wall Street according to Thomson Financial.
Under pressure to improve its results, Lexmark last year said it would reduce sales of unprofitable inkjet printers, a move that some analysts have said would shrink the number of
its printers on the market and cut into profitable sales of supplies.
Lexmark forecast second-quarter revenue to fall in the low- to mid-single digit percentage range year over year, and estimated earnings per share to be in the range of 82 cents to 92 cents.
Analysts were looking for second-quarter revenue to rise less than 1% to $1.245 billion, and forecast net profit per share at 99 cents excluding items.
Lexmark shares, which have declined about 17% so far this year, fell to $57.30 in pre-market trading from their New York Stock Exchange close on Monday of $62.01.