Lexmark warns of 2Q letdown, stock plummetsThe Associated Press
LOUISVILLE, Ky. -- Printer maker Lexmark International Inc. fared worse during the second quarter than management anticipated, providing the latest evidence of a weakening economy.
The warning, issued late Thursday, is the latest sign of trouble in the technology industry, which had been one of the economy's strong points until recently.
Lexmark's stumble caused the company's stock to tumble nearly 10 percent Thursday's extended trading to $22. That decline came after the shares shed $1.98, or 7.5 percent, in the regular trading session, signaling some investors already sensed Lexmark's showing for the three months ending in June would be a letdown.
In recent months, more companies have been curtailing their spending on computer software and hardware amid rising fears that the debt problems plaguing several countries in Europe will culminate in a global recession.
Business software maker Informatica Corp. and computer chip maker Advanced Micro Devices Inc. are among the tech companies that have already acknowledged their latest quarters didn't live up to expectations.
Lexmark blamed its disappointing performance mostly on the trouble in Europe.
The company, which is based in Lexington, Ky., now expects its revenue for the second quarter to drop 12 percent from the same time last year. Management had forecast a revenue decline of 7 percent to 9 percent.
Lexmark estimated its earnings per share for the period will range from 87 cents to 89 cents, missing management's previous target of 95 cents to $1.05.
Analysts polled by FactSet had predicted Lexmark would earn 99 cents per share on a revenue decrease of 8 percent to $963 million.
Lexmark is scheduled to release its second-quarter results and provide more details about its outlook for the rest of the year on July 24.