Lexmark International (NYSE:LXK) shares were pummelled by investors this morning after the company announced disappointing second-quarter results and warned that the current quarter would be even worse.
The company reported that its second-quarter net income dropped by more than 50% to $39.2 million, down from $101.3 million during the same quarter last year.
The printer manufacturer’s revenue declined from $1.04 billion last year, to $918.6 million. That fell short of the $941.2 million anticipated by analysts, Reuters noted.
Adjusted EPS for the quarter came in at 89 cents, which also disappointed Wall Street, which had expected 93 cents.
Adding to is woes, Lexmark issued guidance for the current quarter, forecasting a revenue of between $920 million and $940 million, a decline of between 9% and 11%. It estimated EPS for the third quarter at between 75 cents and 85 cents.
Analysts had predicted third quarter earnings of 98 cents a share on revenue of about $961.8 billion.
Investors liked neither the results nor the outlook, sending Lexmark shares down more than 13% in Tuesday morning trading.
Company officials attributed its falling sales and earnings to the economic crisis in Europe and the rising strength of the dollar, which hurt its international sales and profits. Last year, Europe, the Middle East and Africa (EMEA) accounted for 37% of Lexmark sales.
Last week, business machine competitor Xerox (NYSE:XRX) also warned of lower results for the year due to the worsening economic situation in Europe.