Lexmark Printing Less Money
Lexmark issued an earnings warning today, indicating that profits for the company’s current quarter will fall short of Wall Street’s expectations. The VAR Guy doesn’t know for sure, but it appears that the soft sales are limited to Lexmark; anecdotal information from Hewlett-Packard and Xerox suggest the broader printing and imaging industry remains reasonably strong.
First, the bad news: Lexmark’s stock fell nearly 14 percent in pre-market trading on July 9. The company is expected to announce soft quarterly results on July 24. Lexmark blamed falling hardware prices, higher business costs … yada, yada, yada … the company is in trouble.
Elsewhere, document management companies appear to be holding their own. Xerox in April celebrated the fact that Standard and Poor’s raised the company’s bond rating to investment grade. The move gives Xerox more financial flexibility for potential acquisitions. Xerox is expected to announce quarterly results on July 25.
Meanwhile, shares in Hewlett-Packard continue to trade near a 52-week high. The company announced strong quarterly results on May 16.