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What: Shares of Lexmark International tanked today by as much as 16% after the company reported earnings.
So what: Revenue in the fourth quarter was $967 million with non-GAAP earnings per share of $0.61. While sales came in better than expected, costs were higher than investors anticipated, which led to a disappointing bottom line. Analysts were modeling for $933 million in sales and $0.90 per share in profit.
Now what: Earnings were hurt by higher-than-expected taxes as well as a shift of sales toward higher tax geographies. The company hopes to realize cost savings of $85 million in 2013 from initiatives announced last August. Guidance for the first-quarter calls for revenue to fall 11% to 13%, with non-GAAP earnings per share of $0.80 to $0.90, also worse than expected.
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The article Why Lexmark International Shares Tanked originally appeared on Fool.com.Fool contributor Evan Niu, CFA has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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