Lexmark Warns Q2 Results will Come in Well Short of View; Shares Plunge (LXK)
Printer maker Lexmark International Inc. (LXK) late Thursday issued a warning about its second quarter earnings, sending its shares plummeting in after-hours trading.
The Lexington, KY-based company said it now expects second quarter earnings to range from 87 cents to 89 cents per share, down from a prior view of 95 cents to $1.05. On average, Wall Street analysts are looking for earnings of 99 cents per share.
Lexmark also said that revenues would fall 12% from the year-ago period. It had previously expected a 7% to 9% drop.
The company is slated to deliver its second quarter earnings report on Tuesday, July 24. LXK will likely update its full-year earnings guidance at that time.
Lexmark shares fell $3.41, or -14%, in premarket trading Friday.
The Bottom Line
Shares of Lexmark (LXK) have a 4.94% dividend yield, based on last night’s closing stock price of $24.31. The stock has technical support in the $20 price area. If the shares can firm up, we see overhead resistance around the $26-$28 price levels.
Lexmark International Inc. (LXK) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
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