posted a rise in third-quarter earnings and beat analysts' estimates, and said sales of inkjet and laser printer supplies made up more than half of the quarter's total revenue. The news sent shares upward in Monday premarket trading.
While remaining cautious on the economy, the company guided fourth-quarter per-share earnings above analysts' consensus. Shares were recently up $4.24, or 6.3%, at $71.49, according to Instinet.
Lexington, Ky.,-based Lexmark earned $104.1 million, or 79 cents a share, in the quarter ended Sept. 30. Analysts were calling for 69 cents a share, on average. This compares with earnings of $89.8 million, or 70 cents a share, in the third quarter last year.
Total sales were up 11% at $1.16 billion. Lexmark said laser and inkjet printer sales rose 13% to $430 million and printer supplies totaled $641 million, or 55% of total revenue.
"We believe that our strong product launches this year for both home and business users position us well for the fourth quarter," said Chief Executive Paul J. Curlander. "Nevertheless, we continue to be cautious due to the uncertain economic environment and aggressive price competition."
For the fourth quarter, the company forecast year-over-year revenue in the "mid-to high-single digits" with earnings of 85 cents to 95 cents a share.
Analysts are calling for earnings of 82 cents a share on revenue of $1.27 billion in the fourth quarter.