Home / Industry / Public Companies / Xerox shares climb after Q3 results

Xerox shares climb after Q3 results

Shares of Xerox Corp.  were up 4 percent after the firm’s third-quarter earnings beat Street estimates.

The stock (NYSE: XRX) was trading at $8.05 midday, up from Wednesday’s close of $7.72.

Xerox reported earnings per share of 14 cents before markets opened, down from 29 cents a share a year ago. Net income of $123 million was down 52 percent from a profit of $258 million in last year’s quarter.

Revenue was $3.7 billion, down 16 percent from $4.4 billion, including a 2 percentage point negative impact from currency.

Analysts polled by Thomson Reuters expected Xerox to report earnings per share of 12 cents on revenues of $3.63 billion.

“Our third-quarter performance reflects our continued disciplined approach to managing cash and reducing costs,” said Xerox CEO Ursula Burns in a statement. “As a result, we exceeded our expectations for earnings and operating cash flow, and are benefiting from operational improvements that are mitigating the economic challenges.”

Operating cash flow for the quarter was $610 million. Through the third quarter, the company has generated $1.2 billion in operating cash flow, and has increased its expectation for the full year to $1.7 billion.

Xerox ended the quarter with a cash balance of $1.2 billion, the company said. Total debt was down $938 million through the first three quarters, and the company is on track to reduce total debt by more than $1 billion this year.

Xerox expects fourth-quarter earnings per share of 20 cents to 22 cents, excluding costs related to the acquisition of Affiliated Computer Service Inc. The company has increased its full-year earnings expectation to 55 cents to 57 cents a share, which excludes fourth-quarter ACS acquisition costs. Prior guidance for full-year 2009 was 50 cents to 55 cents a share.

Late last month, Xerox said it would acquire Dallas-based ACS for some $6.4 billion, a mix of cash and stock, in a move to build the services side of its business. The acquisition will more than double Xerox’s total employment and send its revenues well above $20 billion annually.

In other Xerox news, Chairman Anne Mulcahy was appointed to the board of directors of Johnson & Johnson .

(c) 2009 Rochester Business Journal. Obtain permission to reprint this article.


Check Also

The newly named  Aqueduct District complex has good views of the river, to the north and south. (Provided by CBRE Rochester)

New owners of Aqueduct Building envision vibrant, diverse downtown community (access required)

The development team that bought the stately, sprawling Aqueduct Building intends to create a diverse, multi-use riverfront campus that becomes ...

Amit Batabyal

Guest Opinion: Unfairness in society matters more than inequality (access required)

Even though the United States likes to think of itself as an exceptional nation, several aspects of this exceptionalism are ...