UPDATE: Xerox Q3 Profit Beats Estimates

Xerox

reported upbeat earnings for the third quarter. The Norwalk, Connecticut-based company posted a quarterly profit of $266 million, versus a year-ago profit of $286 million. Its EPS came in unchanged at $0.22 in the quarter. Its adjusted earnings came in at $0.27 per share. Its revenue dropped 2% to $5.12 billion versus $5.24 billion. However, analysts were projecting earnings of $0.26 per share on revenue of $5.19 billion. Revenue from Services business rose 1% to $2.9 billion, while revenue from Document Technology business declined 6% to $2 billion. Operating margin rose 0.1 points y/y to 9.5%. Xerox generated $595 million in cash flow from operations in the quarter and repurchased $251 million in stock. “This quarter we delivered earnings at the high end of our range. Profits from our Document Technology business came in above expectations while Services results were lower than planned,” said Ursula Burns, Xerox chairman and chief executive officer. Xerox expects FY14 earnings of $1.11 to $1.13 per share. It projects Q4 earnings of $0.30 to $0.32 per share, versus analysts' estimates of $0.31 per share. Xerox shares dropped 1.06% to $13.06 in pre-market trading.