Tuesday, October 26, 2010
Lexmark shares plunge by more than 20% - Oct 26, 2010
Shares of Lexmark International Inc. (LXK) on the NYSE dropped precipitously by 21% today, as the company's revenue fell short of Wall Street's estimates. Adding to the concern, the company also announced that Chief Executive Paul Curlander plans to retire in early 2011. Some analysts believe that Lexmark is well positioned in the printer market and can recover from the position they are in right now. The company’s third quarter earnings actually even exceeded some analysts expectations, like Zacks. However the printer market is fiercely competitive, and with HP as the market leader it will be difficult for other brands to easily compete. From a remanufacturing perspective, Lexmark inkjet cartridges have a higher failure rate (when reconditioning them to put them through another cycle of use) when compared to similar built cartridges (with print heads for example) by Hewlett Packard, and this makes the refill process (and thereby the cost to the consumer) more expensive. Lexmark also makes the inkjets used in most Dell inkjet printers. 123 Refills offers OEM (original) brand inkjet and toner cartridges for use with Lexmark ink printers and Dell ink printers, as well as high quality and quality control tested remanufactured cartridges and ink refill kits / toner refill kits and refill supplies.
Posted by Author at 10:56 PM