Reuters: Global Markets: Lexmark shares slide on lower revenue estimate

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Lexmark shares slide on lower revenue estimate Jul 13th 2012, 15:05 Fri Jul 13, 2012 11:05am EDT (Reuters) - Shares of Lexmark International Inc (LXK.N) fell 13 percent to its lowest in more than two years after the printer maker said its second-quarter results were hit by weak sales in Europe and a stronger dollar. Lexmark joins a growing list of American technology companies that have warned about the deteriorating economic condition in Europe. Advanced Micro Devices (AMD.N), Applied Materials (AMAT.O), Informatica Corp (INFA.O) and Qlik Technologies (QLIK.O) have lowered their estimates for April-June. Lexmark warned on Thursday that second-quarter revenue fell about 12 percent, much more than it had anticipated. "This revised second quarter outlook reflects a weaker-than-expected demand environment, particularly in Europe, and a larger-than-expected impact from unfavorable changes in currency exchange rates," the company said. Lexmark gets almost 40 percent of its sales from Europe, Middle East and Africa and a stronger dollar hasn't helped. The euro has shed 5.5 percent against the dollar this year. Analysts at Braclays cut their price target on the company's stock for the second time in as many days. The brokerage on Thursday lowered its price target on Lexmark and other printer makers Xerox Corp (XRX.N) and Hewlett-Packard Co (HPQ.N) on concerns the decades-old technology is increasingly losing importance in an industry dominated by new computing devices like tablets. "We see yesterday's pre-announcement as a negative indicator on the health of the printer market as well as overall IT demand, with particular implications for both Xerox and HP," wrote analyst Ben Reitzes, who cut his price target on Lexmark to $21. The stock, one of the biggest percentage losers on the New York Stock Exchange on Friday, was trading at $20.96. HP was down about 2 percent and Xerox down 1.2 percent. (Reporting by Himank Sharma in Bangalore; Editing by Don Sebastian) Link this Share this Digg this Email Reprints

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