Lexmark Reports Rise in Earnings20 Jul, 2004
Lexmark Reports Rise in Earnings
Lexmark International reported a rise in quarterly earnings released on Monday on strong sales of printers and ink cartridges, but its forecast disappointed investors, sending its shares down six percent. A moderate rise in Lexmark's inventories and concern about Hewlett-Packard's soon-to-be-announced new product lineup also weighed on the stock, analysts said. Lexington, Ky.-based Lexmark, second in the printer market after HP, posted second-quarter net earnings of $136.6 million, or $1.02 a share, up 35 percent from $101.7 million, or 77 cents a share, a year earlier. Revenue rose 11 percent to $1.25 billion from $1.12 billion. Lexmark said new products, including machines that fax, scan and copy as well as print, boosted profits. Analysts also cited solid sales of Lexmark products that are sold through computer maker Dell. Lexmark forecast third-quarter revenue growth at a rate in the high single digits to low double digits, and earnings of 90 cents to $1 a share, up from 79 cents a share a year earlier.