Back to top

Analyst Blog

Leading printing and imaging solutions provider Lexmark International Inc. (LXK - Analyst Report) has won a 5-year contract worth $20.0 million from renowned oil and gas producer Statoil ASA (STO - Analyst Report).

The contract makes Lexmark the sole supplier of comprehensive printing solutions to Statoil that are expected to optimize output, enhance productivity and reduce cost per print and printer downtime. Lexmark will provide the energy company with its “Print Release” solution, which provides utmost security in printing activities.

Print Release, introduced in October 2011, allows users to print documents from any networked device on the premise, after the user furnishes personal details to authenticate the activity. Moreover, the solution also takes printing requests from smartphones or tablets, thus helping a mobile workforce.

The proven benefits of Print Release also prompted the Federal Aviation Administration (FAA), which is an arm of the U.S. Department of Transportation (DoT), to opt for the printing service. Apart from the 900 FAA offices, other departments under DoT also used Lexmark’s solutions for better management of their printing requirements.

Earlier this year, Lexmark clinched two print services deals from the U.S. Department of Agriculture and brewer Anehuser-Busch InBev (BUD - Snapshot Report).

Lexmark operates in a highly competitive market where there is a constant price war between major players such as Xerox Corp. (XRX - Analyst Report) and Hewlett-Packard Co. (HPQ - Analyst Report). Additionally, the scope for printing solutions is narrowing as digital technology and e-commerce are becoming more prevalent.

However, considering Lexmark’s strength in the Managed Printing Services segment and growing exposure in the software space through back-to-back acquisitions, we remain bullish on the stock.

Currently, Lexmark has a Zacks #2 Rank (short-term Buy rating) and a long-term Hold recommendation.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%