Friday, April 28, 2006
Lexmark and Xerox -- Good news, bad news?
Or should that be "Bad news means good news?". Seems both companies' announced quarterly results this week were weak, but at least in the case of Lexmark, they were viewed in the "bad but not that bad" category. LXK reported revenues down by 6%, and profits down by 19%, but the company's press release bragged that both numbers exceeded expectations. And Wall Street was also kind, with the stock up and Citigroup issuing an upgrade from hold to buy. The company's stated strategy includes a shift from low-end inkjets to multi-function machines, both ink and laser. XRX, earlier in the week, also reported declines in sales and earnings, but the stock market was not so kind, deflating their stock by about 5% over the course of the week.