Printing Decline Hurts Xerox Earnings

by Nate Wooley | October 23, 2012 11:07 am

Shares of Xerox (NYSE:XRX[1]), the large provider of printing and other business services, were being hit hard Tuesday after reporting lower third-quarter earnings.

Xerox’s Q3 net income came to $282 million, down 12% from the year-ago period, but adjusted earnings of 25 cents per share met Wall Street expectations. Revenues fell roughly 3% to $5.4 billion and were about 3% shy of analyst forecasts.

The decline in earnings was attributed to lower demand in Europe. Xerox also said that issues including the stronger U.S. dollar and some implementation delays[2] on signed contracts hurt earnings this quarter.

Xerox has been working on shifting its focus away[3] from printing over to business services as customers are increasingly switching away from hard-copy files.

XRX shares were down more than 8% in early Tuesday trading.

Endnotes:
  1. XRX: http://studio-5.financialcontent.com/investplace/quote?Symbol=XRX
  2. the stronger U.S. dollar and some implementation delays: http://www.reuters.com/article/2012/10/23/us-xerox-results-idUSBRE89M0JN20121023
  3. shifting its focus away: http://www.bloomberg.com/news/2012-10-23/xerox-third-quarter-profit-falls-12-on-printing-decline.html

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