Xerox Profit Tops Estimates, On Track With Plan To Split In Two

By Ciara LinnaneMarketsMarketWatch Pulse

Xerox Corp. said Friday it had net income of $155 million, or 15 cents a share, in the second quarter, up from $12 million, or 1 cent a share, in the year-earlier period. Excluding one-time charges, EPS came to 30 cents, ahead of the FactSet consensus of 25 cents. Revenue fell 4% to $4.4 billion, matching the FactSet consensus. "Our services segment delivered substantial margin expansion and continued revenue growth in document outsourcing," Chief Executive Ursula Burns said in a statement. "Document technology revenue declines moderated and margin improved driven by cost and productivity initiatives." The company said it is making progress with its plan to separate into two publicly traded companies, and expects the costs of the split to come to $175 million to $200 million pretax, down from earlier estimate of $200 million to $250 million. The company is expecting third=quarter adjusted EPS of 26 cents to 28 cents a share, compared with the current FactSet consensus of 28 cents. Shares were not yet active in premarket trade, but are down 7% in the year so far, while the S&P 500 has gained 6%.

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