Printer manufacturer Lexmark International Group Inc looks to be rolling along nicely, according to Merrill Lynch & Co. The bank has upped its fourth quarter and fiscal 1999 earnings per share estimates for the company by $0.05, to $1.10 and $4.10, respectively. Analyst Steve Milunovich points to the company’s focus and its consistent record of easily beating its target of 20% earnings growth in upping his target for Lexmark shares from $80 to $90. Near-term visibility has improved, Milunovich says, and fourth- quarter results should be ahead of expectations, particularly in the inkjet business. Merrill has upped its revenue target for the quarter by $15m to $875m, up 19% year-over-year. Gross margins for the quarter are expected to decline slightly, however, due to product mix. Importantly, Lexmark insists it is not seeing increased competition following recent product announcements from rival Hewlett-Packard Co.
