Xerox Q1 2014, Profit Declines 5% on Document-Technology Weakness

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Xerox Q1 2014, Profit Declines 5% on Document-Technology Weakness
Adjusted Earnings Expectations for Full Year Trimmed
By Ben Fox Rubin

Xerox Corp. XRX +0.44% said its first-quarter earnings fell 5.1% as revenue from the company's document-technology business continued to shrink.

The company trimmed its full-year adjusted earnings expectations, now forecasting $1.07 to $1.13 a share, from its prior view of $1.10 to $1.16 a share. For the second quarter, Xerox predicted adjusted earnings of 25 cents to 27 cents a share, while analysts estimated 28 cents a share.

 

While long known for its paper copiers and printers, Xerox has been working to transition into a company focused on document management, bill processing and IT outsourcing services. The transformation, however, has faced challenges, including falling sales of printers and copiers and the significant costs of expanding its services business.

Xerox reported income of $281 million, down from $296 million a year earlier. Per-share earnings were flat at 23 cents due to fewer shares outstanding in the latest period. Excluding amortization of intangible assets, earning were 27 cents a share in both quarters. The company in January predicted adjusted earnings of 23 cents to 25 cents.

Revenue sank 1.6% to $5.12 billion. Analysts polled by Thomson Reuters expected $5.15 billion.

Revenue from the company's services business, which represented 57% of revenue, was flat year-over-year at $2.9 billion. Xerox's document-technology business, which represented 40% of total revenue, fell 4% to $2 billion.

 

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April 22, 2014 at 11:28 AM