Lexmark (LXK) Tops Q3 EPS by 12c; Booosts FY14 EPS Outlook Midpoint

Lexmark (NYSE: LXK) reported Q3 EPS of $1.05, $0.12 better than the analyst estimate of $0.93. Revenue for the quarter came in at $918.1 million versus the consensus estimate of $890.5 million.

"In the third quarter, Managed Print Services and Perceptive Software combined revenue grew 20 percent, representing nearly one third of Lexmark's total revenue, and is on track to exceed $1 billion this year," said Paul Rooke, Lexmark chairman and chief executive officer. "Our strong results reflect the work we have been doing to transform Lexmark to a solutions company, creating a unique portfolio of higher value imaging and software solutions.

"The acquisition of ReadSoft further broadens Lexmark's solutions capabilities and reach, and supports our target of generating Perceptive Software revenue of $500 million in 2016," added Rooke. "This acquisition demonstrates the disciplined execution of our capital allocation framework, which fuels Lexmark's transformation and rewards our shareholders through the ongoing return of capital."

Lexmark sees Q4 2014 EPS of $1.10 - $1.20, versus the consensus of $1.18.

Lexmark sees FY2014 EPS of $4.05 - $4.15, versus prior guidance of $3.95 - $4.15 and the consensus of $4.00. Total revenue in the fourth quarter is currently expected to be down 2 to 4 percent compared to last year. The company expects the 2012 decision to exit inkjet to have a diminishing negative impact on revenue growth. Excluding Inkjet Exit revenue, fourth quarter 2014 revenue is expected to grow year to year.

For earnings history and earnings-related data on Lexmark (LXK) click here.

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