Shares of Xerox Corp. were up roughly 3 percent after the company reported fourth-quarter and year-end earnings Thursday morning.
Shares of the stock (NYSE: XRX) were trading midday around $7.80, up from Wednesday’s close of $7.58.
Xerox reported net income of $335 million, or 26 cents a diluted share, down from a profit of $375 million, or 26 cents a diluted share, a year ago. The most recent quarter’s adjusted earnings were 30 cents a share and included 5 cents of restructuring charges. The adjusted earnings per share excludes 4 cents related to special items.
Sales were $5.92 billion, down a percent from $5.96 billion a year ago.
Analysts polled by Thomson Reuters expected fourth-quarter earnings per share of 29 cents on sales of $5.88 billion.
“Strong growth in services and the consistent profitability of our document technology business generated significant operating cash flow and contributed to fourth-quarter earnings that met our expectations,” said Ursula Burns, Xerox chairman and CEO, in a statement.
Revenue from the company’s services business was up 7 percent and represented 52 percent of total revenue. Services revenue totaled some $3.1 billion, up from $2.7 billion.
Document technology sales were $2.5 billion, down 8 percent from $2.9 billion a year ago. The area represented 42 percent of the company’s sales during the quarter.
The drop was due to continued economic and market conditions that put pressure on sales of document systems, supplies and related service, Xerox said.
The company generated $1.8 billion in cash from operations during the fourth quarter, including $269 million of net cash from the sale of certain finance receivables.
For the year, Xerox reported net income of $1.2 billion, or 88 cents a share, versus net income of $1.3 billion, or 90 cents a share, a year ago. Sales were $22.4 billion, down a percent from sales of $22.6 billion. The company reported adjusted earnings of $1.03 a share.
Analysts had expected earnings per share of $1.03 on sales of $22.35 billion.
Operating cash flow was $2.6 billion, up $600 million from full-year 2011.
For the first quarter of 2013, Xerox expects earnings of 19 to 21 cents a share and adjusted earnings per share of 23 to 25 cents. The company reiterated its full-year guidance of earnings per share of 94 cents to $1, and adjusted earnings per share of $1.09 to $1.15.
(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail firstname.lastname@example.org.