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Lexmark's (LXK) Q1 Earnings Miss Estimates

Lexmark International Inc. LXK makes it easier for businesses and consumers to move information between the digital and paper worlds. In doing so, they are guided by a simple vision: Customers For Life. To earn its customers' loyalty, they listen to them, anticipate their needs and act to create value in their eyes.

Synergies from the recent acquisitions (Kofax and Readsoft) and renewed focus on the software space are encouraging. Moreover, the Inkjet exit, software prospects and the MPS approach are positives that will drive shares in the long term.

However, competition from players like Canon Inc., Xerox Corp. and HP Inc. remain concerns. Lexmark has a strong market position but reduced demand for traditional printing hardware and overall macro uncertainty could adversely impact product demand. Due to this, investors are eagerly awaiting LXK’s earnings report in order to set the record straight and to give some guidance on where this company is heading.

LXK have a decent history when it comes to recent earnings reports as the stock has beaten estimates twice and also misses twice in the last four quarters, making for an average surprise of approximately 2.10%.

Currently, LXK has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: LXK misses on earnings. The company’s non-GAAP earnings of 31 cents per share lagged the Zacks Consensus Estimate of 85 cents.

Key Stats: Revenues decreased on a year over year basis primarily due to a decline in Inkjet Exit revenues and the impact of foreign currency fluctuations. Also, lower revenues from imaging and software solutions impacted overall revenues during the quarter.

Check back later for our full write up on this LXK earnings report later!

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