Lexmark 1st-quarter profit up 61 percent, shares jump in premarket trading

Lexmark posts sharp jump in 1Q profit

LEXINGTON, Ky. — Printer and copier maker Lexmark International said Tuesday that first-quarter profits rose sharply and the company projected net income will exceed Wall Street expectations over the next three months.

Shares climbed nearly 12 percent in premarket trading, well above a 52-week high.

The company had already shown late last year that the economic climate had improved and on Tuesday, reported that revenue spiked by double digits and net earnings increased 61 percent.

The company earned $95.3 million, or $1.20 per share, compared with $59.2 million, or 75 cents per share, in the same period a year earlier.

Excluding restructuring charges and other expenses, Lexmark earned $1.35 per share in the latest quarter.

Revenue rose 11 percent to $1.04 billion from $944.1 million.

Analysts, on average, were expecting a profit of 89 cents per share on revenue of $961.1 million, according to a poll by Thomson Reuters.

Such estimates typically exclude one-time charges.

“Lexmark’s first quarter results were significantly better than expected, reflecting strong customer demand for our hardware and supplies products,” said Paul J. Curlander, chairman and CEO.

Curlander also cited cost cuts made during the recession.

For the second quarter, the company expects earnings of 71 cents to 81 cents per share, adjusted earnings of 85 cents to 95 cents per share and revenue to be up in the mid to high-single digit percentage range year-over-year.

Analysts were expecting a profit of 73 cents per share for the second quarter

Shares of Lexmark International Inc. rose $4.69 to $44.64 before the market opened. Shares have traded between $14.23 and $40.65 over the past year during regular trading hours.