UPDATE: Xerox Posts Upbeat Q4 Earnings, Issues Weak Forecast

Shares of

dropped more than 2.6% in pre-market trading after the issued a weak outlook. However, the company reported upbeat quarterly earnings and lifted its dividend. For 2015, Xerox now projects earnings of $1 to $1.06 per share, versus its earlier forecast of $1.11 to $1.17 per share. For the current quarter, the company expects earnings of $0.20 to $0.22 per share, versus analysts' estimates of $0.24 per share. The Norwalk, Connecticut-based company posted a quarterly profit of $156 million, or 13 cents a share, versus a year-ago profit of $306 million, or $0.24 per share. Excluding special items, the company earned $0.31 per share. Its revenue shrank 3% to $5.03 billion, while sales dropped 7%. However, analysts were expecting earnings of $0.29 per share on revenue of $5.07 billion. The company's revenue from services business rose 1% to $2.7 billion, while revenue from document-technology business dropped 8% to $2.2 billion. The company raised its quarterly dividend to 7 cents per share, versus 6.25 cents per share. The company ended 2014 with a cash balance of $1.4 billion. Xerox repurchased $341 million in stock during the quarter. “We delivered strong profit and cash in the fourth quarter,” said Ursula Burns, chairman and chief executive officer. “Services revenue growth improved and margin expanded both sequentially and year-over-year. This is an indication that our plan is delivering positive results. Total contract signings increased 20 percent, driven by renewals. We continue to lead in Document Technology, where we are executing well and where we expanded profit year-over-year.” Xerox shares fell 2.65% to $13.20 in pre-market trading.