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 printer and imaging specialist Lexmark (NYSE: LXK) were showing off big gains today as the stock rallied as much as 20% in intraday trading.

So what: Collectively, Hewlett-Packard (NYSE: HPQ), Canon (NYSE: CAJ), and Epson control 90% of the inkjet-printer market. So it shouldn't come as a big surprise that as Lexmark looks to improve profitability and further focus in on non-print offerings such as business software, its inkjet business would end up in the cost-cutting crosshairs. The company will be shuttering its inkjet business over the coming few years and cutting 1,700 jobs with the move. Management anticipates cost savings of $95 million per year once the restructuring is done.

Now what: Investors are obviously seeing this as a positive move by Lexmark, and I'm not about to second-guess that view. Of course, it's important to remember that this is the announcement of a plan -- the company still needs to execute the restructuring properly if investors are really going to see that near-$100 million annual savings in the income statement. Further, while cost-cutting can be a near-term solution for improving profitability, investors who are long-term owners of Lexmark will want to keep an eye on what the company is doing to reinvigorate growth and improve the top line as well.

Want to keep up to date on Lexmark? Add it to your Watchlist.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.