Xerox Corporation Meets Street Targets, Shares Drop

Shares of Xerox (NYSE: XRX  ) were trading as much as 3.9% lower in early market action following the pre-market release of fourth-quarter results.

The document management expert reported adjusted fourth-quarter earnings of $0.29 per share on $5.6 billion in revenue. The figures were down from $0.30 per share and $5.9 billion, respectively, in the year-ago quarter and exactly in line with analyst estimates.

Looking ahead, Xerox guided non-GAAP earnings in the first quarter to roughly $0.24 per share, again in line with Wall Street projections. Management also reiterated its guidance for the full 2014 fiscal year with a midpoint 4% ahead of analyst targets.

"We managed anticipated headwinds while continuing to build our business by investing in growth markets such as health care and graphic communications, and expanding Services internationally," said Xerox CEO Ursula Burns in the earnings press release.

In other news, Xerox also announced its next quarterly dividend, raising the payout by 8.7% to $0.0625 per share. The dividend is payable in April as usual, but the announcement came about a month earlier than the same payouts in recent years.

The negative market reaction takes the edge off an impressive run, where Xerox shares set an annual high last week after gaining 70% in 52 weeks.

XRX Chart

XRX data by YCharts.

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