Xerox Corp.’s stock edged downward Thursday afternoon, after the firm reported a drop in second-quarter profit.
Shares of Xerox (NYSE:XRX) were trading at $9.81, down 1 percent from Wednesday’s close of $9.83.
The company reported net income of $271 million, or 22 cents a share, compared with $309 million, or 23 cents a share, a year ago. Excluding special charges, earnings per share were 27 cents.
Sales rose 1 percent to $5.4 billion from $5.39 billion in the second quarter of 2012.
Analysts polled by Thomson Reuters had expected the company to report earnings of 24 cents a share.
“Steady progress in growing revenue combined with a disciplined focus on operational improvements resulted in strong earnings and cash generation, positioning us well to deliver on our expectations for the full year,” said Ursula Burns, Xerox chairman and CEO, in a statement.
Services revenue totaled nearly $2.56 billion and represents 55 percent of Xerox’s total revenue. Document technology sales totaled $2.26 billion and represents 42 percent of Xerox’s total sales.
The company generated $533 million in operating cash flow, and remains on track to generate $2.1 billion to $2.4 billion in full-year operating cash flow.
Xerox also reduced its headcount. It cut 1,300 positions worldwide during the quarter and now employs roughly 142,300 workers.
For the third quarter, Xerox expects GAAP earnings from continuing operations of 20 to 22 cents a share and adjusted earnings of 24 to 26 cents a share.
The company continues to expect full-year 2013 GAAP earnings per share from continuing operations in the range of 94 cents to $1, and adjusted earnings of $1.09 to $1.15 a share.
(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail firstname.lastname@example.org.