Lexmark Prints Solid Fourth Quarter Results

Company nearly doubled analyst expectations

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Earnings at Lexington-based printer manufacturer Lexmark passed Wall Street expectations with its fourth quarter and full year earnings.
Lexmark Prints Solid Fourth Quarter Results

Although shares of Lexmark tanked from $70 to $28 per share, the stock price began to rally after the company disclosed a substantially better fourth quarter than expected.

The numbers reflect a shift to more business-related purchases taking place, and less business on the consumer side. Lexmark said their 2007 business segment revenue hit $3 billion, a 5 percent rise from 2006. Consumer business fell 12 percent to $1.97 billion.

Though fourth-quarter earnings of $1.04 per share lagged Q4 2006 by a penny, they still surpassed Wall Street expectations of 58 cents per share. Lexmark’s key to continued success will require targeting high-usage customers in the small office/home office (SOHO) market, and larger customers for laser multi-function printers.

An inside source lamented one miss by Lexmark management. Recently, H-P acquired Exstream Software, a company in Lexmark’s backyard. Exstream’s enterprise document automation software, Dialogue, could have been an asset in Lexmark’s attempts to further boost its business segment sales.

Lexmark Prints Solid Fourth Quarter Results
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