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.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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