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Lexmark 3Q net income jumps and beats predictions

The Associated Press

NEWS: Printer maker Lexmark International Inc. said Tuesday its third-quarter net income surged to beat Wall Street predictions. Its shares jumped in morning trading.

DETAILS: Lexmark said profitability at its Perceptive Software business increased significantly, while revenue rose by double digits both there and at its managed print services business.

NUMBERS: Lexmark earned $28.5 million, or 45 cents per share, compared with break-even results in the same quarter of 2012. Excluding one-time items, the company posted an adjusted profit of 95 cents per share, compared with an adjusted 94 cents per share a year ago.

Revenue fell 3 percent to $890.5 million from $919.2 million. Part of the drop stemmed from the company's decision to exit its inkjet printing business. Excluding inkjet revenue, the company said overall revenue rose 5 percent.

Analysts, on average, expected a profit of 91 cents per share on $871.7 million in revenue, according to FactSet.

FUTURE: For the current quarter, the company said it expects to post a profit of around $1.07 to $1.17 per share. Analysts expect $1.11 per share. Overall revenue is expected to fall between 3 percent and 5 percent. Excluding inkjet revenue, the company said it expects its revenue to be flat to up 2 percent.

STOCK: Shares of the Lexington, Ky.-based company rose $3.19, or 9 percent, to $39 in morning trading, after peaking at $39.68 shortly after the markets opened.