Lexmark shares plunge as CEO departs

chart_ws_stock_lexmarkinternationalinc.top.PNG By Laurie Segall, CNN


NEW YORK (CNNMoney) -- Shares of Lexmark plunged 21% Tuesday, after the printer maker announced the departure of its longtime CEO and reported third-quarter financial results that fell short of analysts' expectations.

The printing manufacturer had revenue of $1.02 billion, up 6% from last year but shy of analysts' $1.04 billion estimate. The quarter's net income of $72 million rose sharply compared to last year, but a weak forecast for slow growth in the current quarter sent investors fleeing. Lexmark's stock had the biggest drop of any S&P 500 company in Tuesday trading.

CEO Paul Curlander, 57, announced plans to retire in early 2011 after 12 years at the Lexington, Ky., printer company. Curlander will be succeeded by Paul Rooke, another longtime Lexmark vet who has helmed the company's Imagining and Solutions Division since 2007.

Lexmark (LXK) is a mainstay in the printing field, but it trails market leader Hewlett-Packard (HPQ, Fortune 500) and faces persistent pressure about its one-trick business model. The company is frequently touted as a good buyout candidate, particularly for private-equity firms. Its current market capitalization, of $3 billion, sits below the $3.9 billion it generated in sales last year.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,614.81 215.14 1.31%
Nasdaq 4,419.48 103.41 2.40%
S&P 500 1,941.28 37.27 1.96%
Treasuries 2.21 0.03 1.24%
Data as of 1:09am ET
Company Price Change % Change
Apple Inc 102.47 2.71 2.72%
Bank of America Corp... 16.60 0.34 2.09%
The Coca-Cola Co 40.68 -2.61 -6.03%
Regions Financial Co... 9.26 0.10 1.09%
Yahoo! Inc 40.18 0.90 2.29%
Data as of Oct 21

Sections

Yahoo was in the spotlight Tuesday as it released its third-quarter results, its first earnings release since the Alibaba IPO. More

Startups focusing on "ag tech," or agricultural technology, are gaining the attention of farmers and investors More

Foreign workers, lured by false promises of good jobs and benefits in America, soon find themselves enslaved in plain sight as victims of labor trafficking, a report from the Urban Institute finds. Here's how it can happen. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.