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Lexmark' (LXK) Q1 Earnings Beat Estimate - Tale of the Tape

Lexmark International Inc. (LXK) provides complete digital printing solutions including inkjet and laser printers, multi-function products (MFP), photo printers and associated supplies and services for both office and home use.

 

However, Lexmark will be impacted by the narrowing scope for printing solutions due to increasing use of digital technology and e-commerce. The competitive climate is also not encouraging, given the strength of other major players, such as Xerox Corp. and Hewlett-Packard Co. These risks are likely to have a negative impact on the to-be-reported quarter results. Due to this, investors are eagerly awaiting Lexmark’s earnings report in order to set the record straight and to give some guidance on where this company is heading.

 

This is especially true given the recent earnings estimate revisions for Lexmark as the consensus estimate has been neither going up no down. However, Lexmark does have somewhat decent history when it comes to recent earnings reports as the stock has beaten estimates thrice and misses once in the last four quarters, making for an average surprise of approximately 5.7%.

 

Currently, Lexmark has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

 

Earnings: Lexmark beats on earnings. Our consensus called for EPS of 79 cents, and the company reported EPS of 81 cents.

 

Revenue: Revenues surpassed. Lexmark posted revenues of $855 million, compared to our consensus estimate of $851 million.

 

Key Stats: The company witnessed year over year decline in revenue, primarily attributed to lower revenues from imaging and software solutions. Also, decline in Inkjet Exit revenues and the impact of foreign currency fluctuations impacted the overall revenue decline during the quarter.

 

2015 Outlook: For 2015, Lexmark expects revenues to be down 3% to 5% year over year. Non-GAAP earnings per share are expected in the range of $3.60 per share to $3.80 per share.

 

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
LEXMARK INTL (LXK): Free Stock Analysis Report
 
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