Xerox Misses Profit Expectations, But Revenue Beats

Xerox Corp. reported first-quarter earnings of $34 million, or 3 cents a share, down from $225 million, or 19 cents a share, in the same period a year ago. Excluding non-recurring items, such as restructuring costs related to its plan to separate into two companies, adjusted earnings per share came to 22 cents, missing the FactSet consensus of 23 cents. Revenue declined 4% to $4.28 billion, above the FactSet consensus of $4.24 billion. For the second quarter, the maker of printers and copiers expects adjusted EPS of 24 cents to 26 cents, compared with the FactSet consensus of 26 cents. Xerox recorded $126 million in restructuring charges during the quarter, and expects total restructuring costs of $300 million, related to the separation. "We put in place a robust program management structure, mapped our path to the separation, initiated leadership searches and began building the strategic, operational and financial foundation of each company," said Chief Executive Ursula Burns. The stock, which was still inactive in premarket trade, has climbed 5.1% year to date, while the S&P 500 has gained 2.3%.