Printing giant Lexmark has announced a rise in revenue as a result of increasing consumer demands for technology and recovering corporate investments. The company reported a 61% first quarter profit increase, and a consensus survey conducted by Thomson Reuters has projected second quarter earnings between 85 and 95 cents a share. The estimate beats analysts’ predictions of 73 cents per share, confirming Lexmark Chief Executive Paul Curlander’s assertion that results were “significantly better than expected, reflecting strong customer demand for our hardware and supplies products.”
Operating expense to revenue ratio currently stands at 24.1%, which slightly improved from last year’s 27.4%. Compared to the January-March quarter of last year, Lexmark’s revenue is up more than $1.04 billion.
Canon not far behind
Lexmark is not the only company experiencing a period of growth, as Canon has revealed that its net profit has more than tripled in the fiscal first quarter. Reported earnings for the first three months of the year were at 56.81 billion yen (about $605 million), a huge increase compared to last year’s period (17.74 billion yen or about $189 million). Between January and March, revenue has risen more than 220.2% from the previous year.
The sudden growth is fueled by both a steady revival in U.S. consumer spending, and a hike in Japanese exports to Asia. The company expects a 82% rise in growth over the course of the full fiscal year, and has increased its expected revenue goal from 200 billion yen (about $2 billion) to 240 billion yen (about $2.5 billion).
Canon will also see increased revenues this year as a result of its new sales campaign in India. The company plans to push sales in Tier I and II cities across the country in an attempt to leverage its brand image. A company representative commented that “we expect our printer sales to go up 50% with the ‘Image Express’ campaign” so it should provide an additional source of revenue in the coming months.