While OEM’s earnings fell 88 percent, adjusted results were better than expected, leading to an increased outlook for the year.
Market Watch reported on Lexmark’s second quarter results, which showed that earnings fell 88 percent year-on-year due to the previous year reaping the benefit from the sale of the company’s inkjet business. Consequently, the adjusted results actually exceeded Lexmark’s previous forecast, with the OEM increasing its outlook for the year as a result.
Following the second quarter results, Lexmark now expects revenue to be “flat to down two percent year-over-year” with adjusted per-share earnings of $0.85 (€0.63) to $0.95 (€0.71), compared to its earlier forecast for a decline of between two and four percent for $3.80 (€2.82) to $4 (€2.97) per share, which had been influenced by the company’s expectation of a “continued negative impact” from its exit from the inkjet business.
2Q14 saw the company achieve a profit of $37.5 million (€27.8 million) or $0.59 (€0.44) per share, down from 2Q13’s profit of $24.1 million (€17.9 million) or $1.47 (€1.09); while revenue increased by less than one percent to $891.8 million (€662 million). Operating expenses meanwhile increased by 40 percent to $288.8 million (€214.4 million).
The article noted that Lexmark’s business tactic against the maturing hardware market has been to “stick to its core business and add software around it”, which has differed to other OEMs such as Xerox which has “diversified further afield with new offerings, such as outsourcing”.
The Recycler reported in April on Lexmark’s first quarter results, which saw earnings fall 27 percent due to weaker product revenue and higher operating expenses; with profit reported at $29.3 million (€21.75 million).