Lexmark Slashes Its 3Q Outlook in Half

I’m still not a big fan of tech stocks right now. Outside of a key few names like Dell and eBay, I’d avoid the entire sector. There’s still a lot of weakness in certain areas. I’m also afraid that there are more problem areas that we don’t even know about. For example, printer maker Lexmark stunned the Street this morning by saying it’s not even going to come close to its earlier estimates for third-quarter earnings. The company slashed it third-quarter earnings estimate from 95 cents to $1.05 a share to a range of 40 cents to 50 cents a share. Holy cow! How can your earlier estimates be off by so much? The earnings will come out three weeks from today. They also said that the fourth quarter is going to be hit as well. The stock is going to get creamed today, but it will be interesting to see how Dell and Hewlett-Packard behave.

Posted by on October 4th, 2005 at 9:10 am


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