Xerox 1Q net income grows but forecast falls short

NORWALK, Conn. (AP) -- Xerox posted a 10 percent jump in first-quarter net income Tuesday, but its outlook fell short of Wall Street expectations.

The business services provider and copier company earned $296 million, or 23 cents per share, in the January-March period. That's up from $269 million, or 19 cents per share, in the same period a year earlier.

Adjusted earnings were 27 cents per share and revenue rose 3 percent, to $5.36 billion.

Analysts, on average, were expecting adjusted earnings of 24 cents per share on revenue of $5.49 billion, according to a poll by FactSet.

"While results in our services business align with our growth strategy and our expectations, challenges in our document technology business continued during the first quarter," said CEO and Chairwoman Ursula Burns.

Revenue from Xerox's document technology business, which represents 40 percent of total revenue, fell 9 percent to $2.14 billion. The segment includes the sale of products and supplies and the related maintenance.

Services revenue accounted for 55 percent of the total and increased 4 percent in the quarter to $2.92 billion.

For the current quarter, Xerox is forecasting earnings of 19 cents per share to 21 cents per share and adjusted earnings of 23 cents to 25 cents per share. Analysts are expecting adjusted earnings of 26 cents per share.

Shares of Xerox Corp., based in the Norwalk, Conn., were flat at $8.60 in midday trading.

The stock has traded in the 52-week range of $6.10 and $9.38.