The weakening economy in Europe and elsewhere is hitting the results of business equipment and service providers.
Today, Xerox (NYSE:XRX) announced that it earned $316 million during its second quarter, down 3% compared to last year. Adjusted EPS was 26 cents for the quarter, down from 27 cents last year.
Revenue slipped 1% to $5.5 billion.
While adjusted EPS met analysts’ forecast, they had been looking for revenue of $5.9 billion, Reuters noted.
Shares of Xerox fell more than 2% in Friday mid-day trading.
The company also lowered its outlook for the rest of the year. It now expects earnings for this year of between $1.07 and $1.12 a share, down from previous forecasts of between $1.12 and $1.18 a share. It reiterated its prior projection of operating cash flow of between $2 billion and $2.3 billion.
Xerox officials attributed the softer outlook to the worldwide economic slowdown, but particularly to diminishing sales in Europe. The rising strength of the U.S. dollar is also negatively affecting sales as the Euro declines.
Analysts told Reuters that further outlook revisions might be necessary as the year goes forward.