Tuesday, October 24, 2006
Lexmark Outlook Disappoints
Today, Lexmark (NYSE LXK) announced increased earnings and (slightly) increased overall revenues (+1.6%) for their Fiscal 3rd Quarter. The details included interesting but not surprising mix change, with business segment sales up 8% and consumer revenues down 5%. The company cited Q4 revenue prospects as flat to down in the "low-single digit percentage range" despite a new and ongoing TV advertising campaign, an SMB initiative, and new color and mono laser printer products announced yesterday. Wall Street responded in the negative, with shares down about 5%, or just under $60/share, near the close of Tuesday trading.