Lexmark Q1 2014, Profit Falls 27% on Weaker Product Revenue

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Lexmark Q1 2014, Profit Falls 27% on Weaker Product Revenue
By Erin McCarthy

Lexmark International Inc. LXK -10.35% said its first-quarter earnings fell 27% as the printer company reported weaker revenue in its product segment and higher operating expenses.

The company, like others in the technology industry, has spent years wrestling with a maturing hardware market, facing squeezed margins and weaker growth from developed economies. Unlike many of its competitors, however, Lexmark has worked to stick to its core business and add software around it. That approach is different from peers such as Xerox Corp. (XRX), which have diversified further afield with new offerings, such as outsourcing.

Lexmark reported a profit of $29.3 million, or 46 cents a share, down from $40 million, or 62 cents a share, a year earlier.

Excluding those changes and other items, per-share earnings declined to 92 cents from 95 cents.

Revenue slipped 0.8% to $877.7 million.

Analysts surveyed by Thomson Reuters predicted earnings of 87 cents a share on $856 million in revenue.

For the second quarter, the company forecast an adjusted profit of 85 cents to 95 cents a share on a revenue decline of 2% to 4%, compared with analysts' estimates of 94 cents a share and a 4% revenue decline. The company said it expects a "continued negative impact" from its decision to exit its consumer and business inkjet hardware and supplies business.

 

Lexmark Q1 2014, Profit Falls 27% on Weaker Product Revenue
By Erin McCarthy

Lexmark International Inc. LXK -10.35% said its first-quarter earnings fell 27% as the printer company reported weaker revenue in its product segment and higher operating expenses.

The company, like others in the technology industry, has spent years wrestling with a maturing hardware market, facing squeezed margins and weaker growth from developed economies. Unlike many of its competitors, however, Lexmark has worked to stick to its core business and add software around it. That approach is different from peers such as Xerox Corp. (XRX), which have diversified further afield with new offerings, such as outsourcing.

Lexmark reported a profit of $29.3 million, or 46 cents a share, down from $40 million, or 62 cents a share, a year earlier.

Excluding those changes and other items, per-share earnings declined to 92 cents from 95 cents.

Revenue slipped 0.8% to $877.7 million.

Analysts surveyed by Thomson Reuters predicted earnings of 87 cents a share on $856 million in revenue.

For the second quarter, the company forecast an adjusted profit of 85 cents to 95 cents a share on a revenue decline of 2% to 4%, compared with analysts' estimates of 94 cents a share and a 4% revenue decline. The company said it expects a "continued negative impact" from its decision to exit its consumer and business inkjet hardware and supplies business.

 

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April 22, 2014 at 12:01 PM