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Lexmark reports lower 3Q net income

Tue, 10/25/2011 - 5:05am
The Associated Press

Lexmark International reported a 7 percent decline in third-quarter net income Tuesday as an increase in revenue was overshadowed by higher tax expenses and restructuring and acquisition-related charges at the printer maker.

The company earned $67 million, or 86 cents per share, in the three months that ended on Sept. 30. That's down from $72 million, or 90 cents per share, in the same period a year earlier.

Excluding the restructuring and acquisition-related charges, Lexmark earned 95 cents per share in the latest quarter, down from adjusted earnings of $1.09 per share.

Revenue inched up slightly to $1.03 million from $1.02 million.

Analysts, on average, expected adjusted earnings of $1.03 per share on revenue of $1 billion, according to a poll by FactSet. Lexmark's stock slipped about 2 percent in premarket trading.

Earnings included a loss of 6 cents per share from tax items in the latest quarter, while a year ago it booked a gain of 4 cents per share on tax items.

High-end hardware, supplies and managed print services helped increase its revenue, the company said.

The company is forecasting fourth-quarter earnings of $1.02 to $1.12 per share and adjusted earnings of $1.15 to $1.25 per share. The latter compares with analysts' expectations of $1.13 per share.

Lexmark expects revenue to decline in the mid-single digit range year-over-year. Analysts are expecting revenue of $1.06 billion, up slightly from revenue of $1.02 billion in the third quarter of 2010.

Shares of Lexmark International Inc. closed up $1.60, or 5.4 percent, at $31.27 on Monday. The stock is down about 10 percent year-to-date.

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