Lexmark Earnings Preview: Decline In Revenue To Continue

Lexmark (NYSE:LXK) is set to announce its Q2 result on July 29th. ^[1] Last quarter, the company announced that it has entered into a definitive merger agreement with a consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG), under which Lexmark will be acquired for $40.50 per share in an all-cash transaction with an enterprise value of approximately $3.6 billion, net of cash. ^[2] On 22^nd July, the company announced that its shareholders have approved the merger. Post the close of the transaction, Lexmark’s common stock will cease to be publicly traded on the New York Stock Exchange. Nevertheless, our expectation for Q2 results are as follows:

Have more questions about Lexmark? See the links below.

• What’s Lexmark’s Revenue And Earnings Breakdown?
• What’s Lexmark’s Fundamental Value Based On Expected 2015 Results?
• By What Percentage Did Lexmark’s Revenues And EBITDA Decrease In The Last Five Years?
• How Has Lexmark’s Revenue Composition Changed Over The Last 5 Years?
• By What Percentage Can Lexmark’s Revenues And EBITDA Grow In The Next 3 Years?
• How Have The Software Division Revenues And EBITDA Grown Since The Acquisition Of Perceptive In 2010?
• How Big Can Lexmark’s Perceptive Business Become By 2020?
• How Has Lexmark’s Laser Printer Price Declined In The Last Five Years?
• How Will Lexmark’s Laser Business Fare Till 2020?

Notes:

1. Lexmark announces date of second quarter 2016 earnings release [↩]
2. Lexmark agrees to be acquired by Apex Technology and PAG Asia Capital, April 19th 2016 [↩]