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Lexmark International Warns of Failing Sales in Europe; Printers Market Tumbles
Laser and inkjet printer manufacturers stock plunged on Friday after Lexmark International Inc joined a host of technology corporation that warned of lowering sales in Europe.
Shares of Lexmark plunged almost 17%, offering it one of the major losers on the New York Stock Exchange and lowering competitors Xerox Corporation and Hewlett-Packard Company .
Worsening economic conditions in Europe and a stronger dollar have directed to bleak estimates from many American technology corporations, comprising Advanced Micro Devices, Inc and Applied Materials, Inc .
Lexmark International Inc on July 13, 2012 decreased -16.25% to the closing price of $20.36. The overall volume in the last trading session was 8.13 million shares. Its fifty two week range was $20.26-$38.34. The total market capitalization remained $1.45 billion.
LXK is behind its 52 week low with -15.45% and lagging behind from its 52 week high price with -16.75%. LXK last month stock price volatility remained 3.02%. In its share capital LXK has 71.14 million outstanding shares among them 70.19 million shares have been floated in market exchange. LXK stock insider ownership included 1.10%.
The stock price of LXK is moving down from its 20 days moving average with -22.03% and remote negatively from 50 days moving average with -22.81%. LXK current year earnings per share experienced a downfall of -3.68% while its current quarter performance remained -36.51%. Company’s beta coefficient included 1.14. Beta factors measures the amount of market risk associated with market trade
http://in.reuters.com/article/2012/07/13/idINL3E8ID3UD20120713
Lexmark’s outlook warning pulls down printer makers
Shares of laser and inkjet printer makers fell on Friday, after Lexmark International Incjoined a host of technology companies that warned of falling sales in Europe.Lexmark’s stock slid as much as 17 percent, making it one of the biggest losers on the New York Stock Exchange and dragging down rivals Xerox Corp and Hewlett-Packard .
Deteriorating economic conditions in Europe and a stronger dollar have led to bleak forecasts from several American technology companies, including Advanced Micro Devices and Applied Materials
Shares of HP, known for its once ubiquitous Deskjet printers, fell 3 percent to $18.77, their lowest in a year, while those of Xerox were down as much as 3 percent. Japanese rivals Canon Inc (7751.T) and Ricoh Co Ltd (7752.T) both closed down on the Tokyo Stock Exchange.
Morningstar analyst Michael Holt said printing, one of the most dispensable parts of a company’s budget, is always the first target of cost-cutting measures.
"When you see times of macro economic distress, printing is one of the areas most susceptible to changes in demand. Even if we have long term negative trends in printing, they can be exaggerated in the short run by economic conditions."
Lexmark, which derives almost 40 percent of its sales from Europe, Middle East and Africa, cut its profit outlook on Thursday and said second-quarter revenue would fall about 12 percent, much more than it had earlier anticipated.
Lexmark said it would be hurt by a strong dollar in the second quarter. The euro has shed 5.5 percent against the dollar this year.HP, unlike Lexmark, has other business segments to fall back on, including its Personal Systems Group, which is being merged with the printing business.Palo Alto-based HP derives 20 percent of its revenue from its Imaging and Printing Group, considered as a steady cash cow because of recurring sales of printer cartridges."Lexmark is focused on mainly business printing but HP has exposure to both businesses and consumers. We see consumer printing as declining much more rapidly than business," analyst Holt said.
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