Xerox's Stock Falls After Profit Outlook Cut

Xerox Corp.'s stock fell 3.3% in light premarket trade, after the document management company met first-quarter profit expectations, but provided a downbeat outlook, amid increasing currency headwinds and softer signings. For the latest quarter, earnings fell to $225 million, or 19 cents a share, from $281 million, or 23 cents a share, in the same period a year ago. Excluding non-recurring items, such as the amortization of intangible assets, adjusted earnings per share were 21 cents, matching the FactSet consensus. Revenue declined 6% to $4.47 billion, below the FactSet consensus of $4.56 billion. "Several of our services businesses performed well, but overall services segment results fell short of our expectations driven by higher implementation costs in certain health enterprise platform accounts," said Chief Executive Ursula Burns. For the year, Xerox cuts its outlook for adjusted EPS to 95 cents to $1.01 from $1 to $1.06. The company expects second-quarter adjusted EPS of 21 cents to 23 cents, below the FactSet consensus of 25 cents. The stock has lost 5.2% year to date, while the S&P 500 has gained 2.6%.