Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of printing specialist Lexmark International
So what: For the quarter, Lexmark reported a profit of $0.89 as revenue fell 11.7% to $918.6 million. Both figures missed Wall Street's estimates, which called for $941.2 million in sales and a profit of $0.93. Worse yet, Lexmark lowered its third-quarter and full-year forecast on continued demand weakness in managed print services in Europe and a weaker euro. It now expects revenue to contract 8% to 10% this year as opposed to its original forecast of just a 2% to 4% retracement in sales and expects EPS of $3.70 to $3.90, down from its original forecast of $4.70 to $4.90.
Now what: Today's news is absolutely awful, yet I am incredibly intrigued by Lexmark as a value play. The company is facing a serious challenge from 3-D printing solution companies Stratasys
Craving more input? Start by adding Lexmark International to your free and personalized watchlist so you can keep up on the latest news with the company.