Second Look: Lexmark Contnues Slide
10.07.2007 17:26
Computers
- Source: Forbes
Shares of Lexmark International Inc. slid for the second straight trading session Tuesday, the day after the printer maker sharply lowered its second-quarter forecast on weak consumer inkjet supply sales and aggressive pricing and promotions. The stock fell 69 cents to $45.56 in afternoon trading. On Monday, shares dropped $3.15, or 6.4 percent, to end at $46.25. The Lexington, Ky.-based company's shares have traded in a 52-week range of $43.50 to $74.68. Lexmark on Monday predicted second-quarter income of 64 cents to 69 cents per share, down from a previous expectation of 82 cents to 92 cents per share. Analysts polled by Thomson Financial expected income of 86 cents per share. Lexmark also forecast third-quarter per-share income of breakeven to 10 cents, compared with a Wall Street projection of 81 cents. Lehman Brothers (nyse: LEH - news - people ) analyst Caroline Sabbagha, who rates Lexmark "Equal Weight," said the weaker-than-expected outlook for both the second and third quarters reflects an increasingly competitive inkjet environment. "We think it is likely getting costlier both to attain retail shelf space and to get the consumer's attention," she wrote in a note to investors. Sabbagha lowered her target price to $50 from $58, and her 2007 earnings outlook to $2 per share from $3.58 per share. The analyst noted that, according to Lexmark's management, the company's second-quarter shortfall is due mainly to weak margins. ________ 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 This material may not be published broadcast, rewritten, or redistributed
| 
Add comment