Lexmark's Print Release for Statoil - Analyst Blog

By
A A A

Leading printing and imaging solutions provider Lexmark International Inc. ( LXK ) has won a 5-year contract worth $20.0 million from renowned oil and gas producer Statoil ASA ( STO ).

The contract makes Lexmark the sole supplier of comprehensive printing solutions to Statoil that are expected to optimize output, enhance productivity and reduce cost per print and printer downtime. Lexmark will provide the energy company with its "Print Release" solution, which provides utmost security in printing activities.

Print Release, introduced in October 2011, allows users to print documents from any networked device on the premise, after the user furnishes personal details to authenticate the activity. Moreover, the solution also takes printing requests from smartphones or tablets, thus helping a mobile workforce.

The proven benefits of Print Release also prompted the Federal Aviation Administration (FAA), which is an arm of the U.S. Department of Transportation (DoT), to opt for the printing service. Apart from the 900 FAA offices, other departments under DoT also used Lexmark's solutions for better management of their printing requirements.

Earlier this year, Lexmark clinched two print services deals from the U.S. Department of Agriculture and brewer Anehuser-Busch InBev ( BUD ).

Lexmark operates in a highly competitive market where there is a constant price war between major players such as Xerox Corp. ( XRX ) and Hewlett-Packard Co. ( HPQ ). Additionally, the scope for printing solutions is narrowing as digital technology and e-commerce are becoming more prevalent.

However, considering Lexmark's strength in the Managed Printing Services segment and growing exposure in the software space through back-to-back acquisitions, we remain bullish on the stock.

Currently, Lexmark has a Zacks #2 Rank (short-term Buy rating) and a long-term Hold recommendation.


 
ANHEUSER-BU ADR (BUD): Free Stock Analysis Report
 
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
 
LEXMARK INTL (LXK): Free Stock Analysis Report
 
STATOIL ASA-ADR (STO): Free Stock Analysis Report
 
XEROX CORP (XRX): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BUD , FAA , HPQ , LXK , STO

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

110,219,031
  • $6.79 ▲ 14.31%
104,982,008
  • $11.83 ▲ 12.35%
95,065,355
  • $3.40 ▲ 0.59%
79,694,763
  • $36.59 ▲ 2.64%
49,037,292
  • $39.90 ▲ 5.81%
47,069,528
  • $15.34 ▼ 1.03%
43,387,835
  • $6.56 ▼ 1.94%
42,066,487
  • $98.38 ▼ 0.65%
As of 7/29/2014, 04:04 PM