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Xerox forecast misses estimates due to restructuring

A generic picture of a Xerox logo on a photocopier. REUTERS/Catherine Benson
A generic picture of a Xerox logo on a photocopier. REUTERS/Catherine Benson

(Reuters) - Xerox Corp forecast adjusted earnings for the current quarter below analysts' estimates as the company expects to take charges related to restructuring in its outsourcing business, sending its shares down 4 percent before the bell.

Xerox, known for its printers and copiers, forecast adjusted earnings per share from continuing operations of 28 to 30 cents for the fourth quarter, below analysts' expectations of 33 cents.

The forecast included about 4 cents per share on restructuring charges and higher pension settlement expenses, the company said.

Xerox, which reported a better-than-expected profit for the third quarter, last November kicked off a restructuring program focused on its services business.

The business, which provides business process outsourcing, IT outsourcing and document outsourcing, now generates about 56 percent of the company's revenue.

Revenue from the business grew 3 percent to $2.94 billion in the third quarter.

Adjusted net income from continuing operations attributable to Xerox rose to 26 cents per share, from 25 cents per share a year earlier.

Analysts on average had expected earnings of 25 cents per share, according to Thomson Reuters I/B/E/S.

Revenue was largely flat at $5.26 billion.

Xerox also reduced its full-year forecast for adjusted earnings from continuing operations to $1.08-$1.10 per share, from $1.09 to $1.15 it had forecast.

Shares of the company closed at $10.73 on the New York Stock Exchange on Wednesday.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Sriraj Kalluvila)

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