Lexmark's Profit and Forecast Miss Estimates; Shares Plunge (LXK)

Lexmark’s Profit and Forecast Miss Estimates; Shares Plunge (LXK)


Printer maker Lexmark International Inc. (LXK) on Tuesday posted worse-than-expected fourth quarter earnings results and offered a tepid current-quarter forecast, sending its shares lower in premarket trading.

The Lexington, KY-based company reported fourth quarter net income of $6.3 million, or 10 cents per share, compared with $69.3 million, or 94 cents per share, in the year-ago period. Excluding special items, adjusted profit was 61 cents per share. Lexmark also said that a higher tax rate negatively impacted profits by an additional 25 cents per share.

Revenue fell almost 9% from last year to $967.4 million.

On average, Wall Street analysts expected a higher profit of 90 cents per share, albeit on lower revenue of $934.03 million.

Looking ahead, LXK forecast first quarter adjusted earnings to range from 80 to 90 cents per share, which would badly miss analysts’ outlook for $1.01 per share.

Lexmark shares fell $1.77, or -6.3%, in premarket trading Tuesday.

The Bottom Line
Shares of Lexmark currently offer a 4.8% dividend yield, based on Tuesday morning’s trading price of $24.93.

Lexmark International Inc. (LXK) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from Dividend.com.

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today