Lexmark on Target

It beats estimates and guides higher.
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Lexmark (LXK) beat first-quarter targets Tuesday and guided in line for the second quarter.

The Lexington, Ky., computer printer company made $86 million, or 78 cents a share, down from the year-ago $124 million, or 96 cents a share. Revenue fell to $1.28 billion from $1.36 billion a year earlier. Analysts surveyed by Thomson Financial were looking for a 69-cent profit on sales of $1.22 billion.

Business segment revenue fell 5% from a year ago to $688 million and consumer revenue fell 7% to $587 million. Gross margin excluding restructuring charges was flat at 33%.

"While our first-quarter results were better than expected, we still have more work to do," said CEO Paul Curlander. "We are executing the restructuring actions that we announced in January to improve our operating efficiency and, at the same time, we continue to make good progress on our core strategic initiatives. Our investments in product development are evident in new products that are winning awards and strengthening our position in key growth segments."

The company said it expects to make around 75 cents a share, excluding restructuring charges, for the second quarter, matching the Thomson Financial estimate.