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Xerox Profit Falls, But Adj. EPS Tops View
[October 22, 2014]

Xerox Profit Falls, But Adj. EPS Tops View


(dpa-AFX International Compact Via Acquire Media NewsEdge) NORWALK (dpa-AFX) - Printer and copier maker Xerox Corp. (XRX) Wednesday reported third-quarter profit that declined from the prior year, amid a drop in revenues. Adjusted earnings topped Wall Street estimates.



Net income attributable to the company declined to $266 million from $286 million. Earnings per share were flat with last year at $0.22.

Adjusted for the amortization of intangible assets, net income from continuing operations attributable to Xerox was $0.27 per share, while it totaled $0.26 per share last year.


On average, 11 analysts polled by Thomson Reuters expected the company to report profit per share of $0.26 for the quarter. Analysts' estimates typically exclude special items.

Total revenues slipped to $5.12 billion from $5.24 billion. Analysts expected revenue of $5.19 billion for the quarter.

Revenue from the company's Services business, which represented 57 percent of total revenue, rose 1 percent to $2.9 billion. Segment margin for Services was 8.9 percent.

The Document Technology business, which represented 40 percent of total revenue, generated $2 billion, down 6 percent from last year. Segment margin was 14 percent.

Ursula Burns, CEO, said, "Our Document Technology business continues to provide strong profitability, and we are continuing to invest in our Services business for revenue and profit improvement by strengthening leadership and evolving our operating model to better leverage our scale and drive efficiency and customer value. These activities will position us well for the future." For the fourth quarter, Xerox expects earnings per share to be in the range of $0.26 to $0.28 and adjusted earnings per share to be between $0.30 and $0.32. Wall Street looks for earnings of $0.31 per share.

Looking further ahead, the company sees full-year 2014 earnings per share of $0.93 to $0.95 and adjusted earnings per share of $1.11 to $1.13. Analysts expect the company to report full-year earnings per share of $1.11.

The stock closed up 4.1 percent on Tuesday at $13.20, and is down 1.1 percent in pre-market activity.

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