Xerox Earnings Soar 62%, Shares Jump
In the second quarter, Xerox said it earned to $227 million, 16 cents a share, up from $140 million, or 16 cents a share, in the year-ago period. Adjusted net income in the latest quarter totaled 24 cents a share, beating expectations for earnings of 21 cents per share. Revenue rose to $5.5 billion, from $3.7 billion. Adding ACS revenue to 2009 results, total revenue grew 2%. Analysts had expected revenue of $5.6 billion, according to FactSet Research.
"Our second-quarter results reflect strong across-the-board performance in driving revenue growth, generating cash and expanding earnings," said chairman and CEO Ursula Burns. "Through the first half of the year, we've made excellent progress in scaling our services business and strengthening our leadership in the marketplace. We expect this progress will continue, positioning us well to increase our earnings expectations for the full year."
For the third quarter, Xerox expects adjusted EPS to be 19 to 21 cents per share. Full-year adjusted EPS is expected to be 88 to 92 cents, an increase from the company's previous guidance of 75 to 85 cents per share.
Xerox shares climbed 5.7% in premarket trading to $8.89.