Lexmark Shares Fall After 2Q Warning
09.07.2007 16:59
Computers
- Source: Forbes
Shares of Lexmark International Inc. dropped Monday after the printer maker warned that a shortfall in consumer inkjet supply sales will hurt its second-quarter results. The company also issued a disappointing third-quarter outlook. Shares fell $3.01, or 6.1 percent, to a 52-week low of $46.39 in midday trading. In the past 52 weeks, the stock has traded between $48.17 and $74.68. JPMorgan analyst Bill Shope said Lexmark attributed the "significant shortfall" for the second quarter to weakness in inkjet supplies revenue, aggressive pricing, some greater-than-expected product costs, and higher-than-expected branded inkjet unit growth. The company expects these problems to continue in the third quarter. Shope, who rates the company "Neutral," said supplies sales remain under pressure for Lexmark as its customer base continues to shrink. Meanwhile, shares of other printer makers edged slightly lower. Canon Inc. (nyse: CAJ - news - people ) fell 9 cents to $58.37, and shares of Hewlett-Packard Co. (nyse: HPQ - news - people ) fell 42 cents to $45.56. HP, the world's biggest technology company by revenue, also makes computers, servers, networking equipment and software. Shares of Xerox Corp. (nyse: XRX - news - people ) slid 18 cents to $18.96. On the other side were shares of Eastman Kodak Co. (nyse: EK - news - people ), which rose 27 cents to $28.58. Kodak sells imaging systems digital cameras and printers as it shifts focus away from the declining business of traditional film cameras. ________ Questions or comments about this story should be directed to the Financial News desk of the Associated Press at 212-621-7190. Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
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