Lexmark quarter hurt by Europe, sees weak 3rd-quarter
(Reuters) - Printer maker Lexmark International Inc (LXK.N) posted a sharply lower than expected quarterly result on lower demand from Europe and unfavorable currency moves, and warned revenue and profit will also decline in the third quarter.
The company forecast third-quarter revenue to decline 9-11 percent, which translates to revenue between $920 million to $940 million.
It expects adjusted earnings of 75 cents to 85 cents a share.
Analysts on average expect third-quarter earnings of 98 cents per share on revenue of $961.8 million, according to Thomson Reuters I/B/E/S.
Lexmark's second-quarter net income more than halved to $39.2 million, or 55 cents per share, from $101.3 million, or $1.27 per share, a year ago.
The company this month cut its outlook for the quarter citing an impact from exchange rates and weakness in Europe.
Rival Xerox Corp (XRX.N) also cited tough conditions in Europe on Friday when it cut its full-year profit target after reporting lower second-quarter results.
Europe, the Middle East and Africa (EMEA) brought in 37 percent of Lexmark's revenue last year.
Excluding items, it earned 89 cents per share in the second quarter.
Analysts, on average, were looking for second-quarter earnings of 93 cents per share on revenue of $941.2 million.
Revenue for the quarter fell to $918.6 million from $1.04 billion a year ago.
Shares of Lexmark have fallen 24 percent since the company slashed its outlook on July 12, while the S&P Technology Hardware & Equipment Industry Group Index .GSPTEHW has risen 1.6 percent during the same period.
Shares of the company fell 1 percent pre-market on Tuesday, after closing at $19.22 on Monday on the New York Stock Exchange.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Rodney Joyce)