By midday, shares had tumbled -11.3% to $41.50.
The company said it expected lower revenue as a result of its exit from its inkjet hardware and supplies division. Management said total revenue is currently expected to decline 2% to 4% compared to the year-ago quarter.
Unadjusted earnings are expected between 47 cents and 57 cents a share compared to $1.47 a share a year earlier. Analysts surveyed by Thomson Reuters had anticipated unadjusted earnings of 69 cents a share.
Excluding one-time items, earnings are expected between 85 cents and 95 cents a share compared to $1.04 a share in the year-ago quarter. Analysts had forecast 94 cents a share.
TheStreet Ratings team rates LEXMARK INTL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LEXMARK INTL INC (LXK) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, attractive valuation levels and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
- You can view the full analysis from the report here: LXK Ratings Report