Barclays Cuts Estimates on Lexmark (LXK); Potential for Weakening Demand

Barclays maintains an 'Equalweight' on Lexmark International (NYSE: LXK), price target lowered from $36 to $31.

Barclays analyst says, "For Lexmark's F3Q we now expect non-GAAP EPS of $1.02 (was $1.06) based on a 1.4% y/y revenue decline to $1.01 billion (was $1.026 billion) and operating margin of 10.9% (was 11.1%). For FY11 we now estimate non-GAAP EPS of $4.71 (was $4.85) based on a 0.7% y/y revenue decline to $4.18 billion (was $4.22 billion) and operating margin of 12% (was 12.2%). For FY12 we now estimate non-GAAP EPS of $4.55 (was $4.85) based on a 1.8% y/y revenue decline to $4.1 billion (was $4.2 billion) and operating margin of 11.2% (was 11.6%). For FY13 we now estimate non-GAAP EPS of $4.40 (was $4.76) based on a 2.2% y/y revenue decline to $4.02 billion (was $4.16 billion) and operating margin of 11% (was 11.5%)."

For more ratings news on Lexmark International click here and for the rating history of Lexmark International click here.

Shares of Lexmark International closed at $29.62 yesterday.

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