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.
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