LEXMARK SHARES DIVE ,DOWN,DOWN,DOWN !

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LEXMARK SHARES DIVE ,DOWN,DOWN,DOWN !

 user 2005-10-04 at 10:59:00 am Views: 53
  • #12998

    Lexmark Shares Dive After Profit Outlook Cut
    Printer Maker’s Shares Tumble; Firm Says Forecast Hurt by Weak Demand
    NEW YORK (Oct.05) -
    Printer-maker Lexmark International Inc. on Tuesday cut its
    third-quarter profit estimate by more than half due to an unexpected
    decline in revenue. The company’s stock sank nearly 25 percent in early
    trading to a new 52-week low.
    Lexmark estimated earnings for the quarter will be between 40 cents and
    50 cents per share, less than half of previous projections, saying
    revenue declined by about 4 percent to 5 percent, instead of rising in
    the low single-digit percentages as forecast.
    Analysts were expecting the company to post earnings of $1.02 per share
    in the third quarter, slightly above the midpoint of Lexmark’s earlier
    forecast of between 95 cents and $1.05 per share, on revenue of $1.3
    billion, up about 3 percent from a year ago.
    The revised outlook was a result of lower revenue from supplies for
    laser and inkjet printers, as customers reduced inventory and Lexmark
    saw lower demand amid end users. Lexmark also said it experienced
    slower demand for laser and inkjet printers, and it priced the printers
    more aggressively and increased the use of promotions during the
    quarter.
    Shares of Lexmark fell $15.18, or 24.9 percent, to $45.76 in early
    trading on the New York Stock Exchange, below its previous 52-week low
    of $59.50.
    Lexmark sells its products through distributors including Ingram Micro
    and Tech Data, and through retailers such as CompUSA in the United
    States and Carrefour in France.
    The company said the same factors should influence fourth-quarter
    results, causing revenue and earnings to come in well below the current
    estimates of Wall Street analysts. Analysts were looking for earnings
    of $1.17 per share, with revenue rising 1 percent to $1.56 billion.
    Lexmark plans to release its third-quarter results on October 25.