Lexmark Plunges on Outlook, Q2

Lexmark International Inc. (LXK) offered a weak third-quarter outlook today after second-quarter results came in behind Wall Street expectations.

Shares of this Zacks #4 Rank ("Sell") company have plunged more than 20% on extraordinarily heavy volume of about 14.5 million, compared to the average daily volume of approximately 2.5 million.

The company expects third-quarter adjusted earnings of 40 cents to 50 cents per share, which is below the consensus forecast of 52 cents per share.

Meanwhile, Lexmark posted second-quarter adjusted earnings of 55 cents per share, missing the consensus estimate by nearly 10%.

Sales fell 21% to $904.6 million as the economic slump impacted demand for its imaging and printing products.

The average forecast for the company's full-year earnings has declined a penny over the past week to $2.59 per share as 1 of 12 covering analysts lowered expectations.

Read the full analyst report on LXK