LXK: Timing is Everything on Lexmark Call

In December I thought Lexmark (LXK) might be worth a look for value investors. That call is looking much better since Lexmark reported earnings this morning:

Fourth-quarter revenue was $1.31 billion, down 4 percent compared to revenue of $1.37 billion last year. Fourth-quarter GAAP earnings per share were $1.04. Earnings per share for the fourth quarter of 2007 would have been $1.29 excluding $0.25 per share for restructuring-related activities.

The $0.58 consensus estimate was blown away, and guidance of $0.80-$0.90 for the coming quarter (ex. restructuring charges) was also ahead of the $0.80 consensus. Since I originally recommended the stock, it is down 1.5%, but that compares favorably to the 8.7% decline in the S&P 500.

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Topics: Computer Peripherals, Lexmark (LXK) | RSS

One Comment on “LXK: Timing is Everything on Lexmark Call”

  1. [...] over time. It remains, in my opinion, worth a look for value investors. However, it offers a bumpy ride – and I’d like to see it hold the 50 day moving average as evidence against the stock being a [...]

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