Document management expert Xerox (XRX) reported first-quarter earnings yesterday that came in below top-line consensus estimates by Capital IQ analysts but was in line on the bottom line. However, the second quarter-earnings guidance it ended up issuing was ahead of forecasts.
Xerox reported revenues for the three months ending on March 31 of $5.36 billion, down 2.7% from the same period last year and below analysts expectations of $5.49 billion. The document specialist recorded earnings of $296 million, or $0.23 per share, some 21% higher than the $0.19 in profits it generated last year and on target with what analysts were expecting.
Guidance for second-quarter GAAP earnings is expected to be in a range of $0.19 to $0.21 per share, with adjusted EPS of $0.23 to $0.25. That puts it in line with the $0.20 Wall Street is expecting in GAAP earnings and $0.24 in adjusted profits.
For the full year, however, Xerox said it expects per-share GAAP profits to be in the range of $0.94 to $1.00, with adjusted EPS coming in the range of $1.09 to $1.15. Analysts are looking for $1.02 per share in GAAP earnings and $1.11 in normalized earnings.
Noting the challenges it continues to face in the document technology business, Xerox Chairman and CEO Ursula Burns said: "We're continuing to shift our business model to adapt to market trends by expanding indirect distribution and streamlining our supply chain and product portfolio. These changes, along with implementing broader operational improvements across the company, will result in increased margins that will help us scale profitable revenue in services while maintaining strong market share in document technology."
With sales approaching $23 billion, Xerox is the world's leading enterprise for business process and document management, employing 140,000 people in more than 160 countries.