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 quarter.
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.