Lexmark Earnings Cheat Sheet: Shares Down 14% After Major Miss

S&P 500 (NYSE:SPY) component Lexmark International, Inc. (NYSE:LXK) reported a lower net income in first quarter, missing analysts’ estimates. Lexmark International Inc. develops and manufactures printing and imaging products and solutions for offices and homes.

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Lexmark International Earnings Cheat Sheet for the First Quarter

Results: Net income for the computer based systems company fell to $83.3 million ($1.04/share) vs. $95.3 million ($1.20/share) a year earlier. A decline of 12.6% from the year earlier quarter.

Revenue: Fell 0.8% to $1.03 billion YoY.

Actual vs. Wall St. Expectations: LXK fell short of the mean analyst estimate of $1.24/share. Estimates ranged from $1.13 per share to $1.41 per share.

Quoting Management: “Despite the near-term marketplace and transitional challenges we faced this quarter, Lexmark’s strategic focus areas grew as we continue to execute our long-term strategy of targeting higher usage, higher growth areas of the business market,” said Paul Rooke, Lexmark president and chief executive officer. “Yesterday’s product announcements advance Lexmark’s position in two rapidly growing segments; workgroup color lasers and enterprise content management.”

Key Stats: Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the fourth quarter of the last fiscal year, net income rose 46.7% from the year earlier while the figure increased more than sevenfold in third quarter of the last fiscal year, more than fivefold four quarters ago and 61% five quarters earlier.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 14.2%.

Competitors to Watch: Canon Inc. (NYSE:CAJ), Hewlett-Packard Company (NYSE:HPQ), Xerox Corporation (NYSE:XRX), Dell Inc. (NASDAQ:DELL), Synaptics, Incorporated (NASDAQ:SYNA), Hauppauge Digital, Inc. (NASDAQ:HAUP), Immersion Corporation (NASDAQ:IMMR), EMC Corporation (NYSE:EMC), Ricoh Company Ltd. (RICOY), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Logitech Intl. SA (NYSE:USA) (NASDAQ:LOGI).

Today’s Performance: Shares of LXK are trading at $32.72 as of April 26, 2011 at 9:41 AM ET, down 14% from the previous close.

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