Xerox Corp. (XRX) reported third-quarter 2013 results before markets opened Thursday morning. The business technology firm posted adjusted diluted earnings per share (EPS) of $0.26 on revenues of $5.3 billion. In the same period a year ago, the company reported EPS of $0.25 on revenues of $32.1 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.25 and $5.34 billion in revenues.
On a GAAP basis, Xerox reported EPS of $0.22, which includes a $52 million ($0.04 per share) charge for amortization of intangible assets.
For the fourth quarter, Xerox guided adjusted EPS in a range of $0.28 to $0.30, compared with a consensus estimate of $0.33. For the full-year, the company is forecasting EPS of $1.08 to $1.10, compared with the consensus estimate of $1.12.
The company's CEO said:
This quarter shows how we are successfully capturing the benefits of a diversified portfolio. Within services we continue to focus on improving our cost structure while maintaining investments in areas where we see opportunity, such as healthcare. In document technology, revenue declines stabilized with continued good profitability. We continue to see demand from small and midsize businesses in the United States, and positive trends in the high end of our business
Xerox cut its R&D spending year-over-year by 0.3% in the third quarter and cut its SG&A expenses by a similar amount. The company also recorded restructuring and asset impairment charges of $35 million in the third quarter, including $38 million for the firing of about 2,150 workers. The costs were partially offset by reversals in changes to estimated reserves.
Xerox shares were down about 5.8% in premarket trading to $10.11, in a 52-week range of $6.10 to $10.40. Thomson Reuters had a consensus analyst price target of around $19.20 before this report.