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What: Shares of Lexmark (NYSE:LXK) have popped today by as much as 12% before giving up much of those gains, after the company reported earnings.

So what: Adjusted revenue in the second quarter came in at $890 million, which led to adjusted earnings per share of $0.95. Both results topped investor expectations, which were perched at $859 million in sales and $0.88 per share in adjusted profit.

Now what: CEO Paul Rooke said the company topped its guidance in part thanks to significant customer wins. Lexmark continues to move away from the inkjet business in order to focus on software and services, and strength in those segments is giving the company an improved outlook. Revenue this year is now expected to decline by a modest 6% to 7%, much better than the previous 8% to 10% drop that Lexmark was expecting previously.

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