Earnings Preview For Lexmark International (LXK)

Lexmark International (NYSE: LXK) is expected to publish its Q1 earnings report before the markets open on Tuesday, April 26. Analysts are predicting earnings per share to be $1.24, slightly down from previous year's level of $1.35.

Lexmark International is a Kentucky-based company engaged in developing, manufacturing and supplying printing, imaging, document workflow and content management solutions for the office. Lexmark's products include laser printers, inkjet printers, multi-function devices, dot matrix printers and associated supplies, solutions and services, and ECM software solutions and services. Lexmark has two segments: Imaging Solutions and Services and Perceptive Software. The company develops and owns the technology for its laser and inkjet products, software related to managed print services, and ECM solutions. On June 7, 2010, the company acquired Perceptive Software, a provider of ECM software and document workflow solutions. The company currently has around 13,200 employees.

Lexmark's shares gained 5% last week in spite of news that the Cebu City government will still ask Lexmark Research Development Corp. to pay the $4.4 million worth of real property tax, which has remained unpaid since 2009.

Investors might be worried about the lack of revenue growth for next quarter, however. Analysts are predicting revenues for Q1 and Q2 to stand at $1.05 billion. On the other hand, analysts have a tendency to underestimate Lexmark's performance. Last year, Lexmark's earnings per share outperformed all four expected quarterly earnings per share by as much as 50%. Investors will be hoping that Lexmark can maintain this habit of beating market expectations on Tuesday as well.