Jan 28 Printer maker Lexmark International Inc
reported better-than-expected quarterly results, helped
by higher revenue from its managed print services and software
businesses, sending its shares up 7 percent before the bell.
The company also forecast first-quarter adjusted earnings of
80-90 cents per share and revenue decline of 3-5 percent due to
its exit from the inkjet printer business.
Analysts on average were expecting earnings of 85 cents per
share, according to Thomson Reuters I/B/E/S.
Lexmark and larger rival Xerox Corp are working to
grow outside their traditional printing business as
cost-conscious companies print less and personal computing moves
to tablets and smartphones.
Lexmark's revenue from its perceptive software business,
which makes software to scan everything from spreadsheets to
medical images, rose 70 percent to $72 million in the fourth
Revenue from managed print services, which allow companies
to outsource their printing needs to a service provider, rose 22
percent in the quarter ended Dec. 31.
Total revenue rose 4 percent to $1.01 billion.
Net income rose to $94 million, or $1.48 per share, from
$26.3 million, or 40 cents per share, a year earlier.
Excluding items, the company earned $1.18 per share.
Analysts on average had expected earnings of $1.09 per share
on revenue of $929.5 million.
Xerox reported weaker-than-expected quarterly revenue last
week as growth in its outsourcing services business, now its
biggest revenue generator, stalled.
Shares of Lexington, Kentucky-based Lexmark were trading at
$37.50 in premarket trading on Tuesday.