Xerox (XRX) revealed on Tuesday a stronger-than-expected 28% increase in third-quarter profits and upbeat guidance for the current quarter, driving the company’s stock more than 3% higher.
Continue Reading Below
The Norwalk, Conn.-based provider of document technology and IT outsourcing support said it earned $320 million, or 22 cents a share, last quarter, compared with a profit of $250 million, or 17 cents a share, a year earlier. Excluding one-time items, it earned 26 cents a share, a penny higher than analysts had forecasted.
Revenue inched up 2.9% to $5.58 billion, but that managed to slightly surpass the Street’s view of $5.57 billion. Gross margins grew to 79.3% from 79.2%.
“We delivered steady revenue growth this quarter along with earnings and cash in line with our expectations,” CEO Ursula Burns said in a statement. “Our consistent performance positions us well to grow full-year adjusted EPS by 15 to 18 percent, reflecting our global strengths in business process and document management and the efficiencies we’re driving across our enterprise.”
Looking ahead, Xerox said it expects to post fourth-quarter earnings of 32 cents to 35 cents, excluding items. That compares favorably with consensus calls from analysts for 32 cents.
Xerox also narrowed its 2011 non-GAAP EPS view to $1.08 to $1.11, compared with the Street’s view of $1.08 billion.