Why Lexmark Shares Popped
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 Lexmark 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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The article Why Lexmark Shares Popped originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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