Xerox Corp. Friday said second-quarter profit more than doubled on stronger sales of copiers and printers and on cost cutting, and it raised its full-year outlook on strong demand for its new technology.
Stamford, Connecticut-based Xerox said net income available to common shareholders rose 149 percent to $187 million, or 21 cents a share, from $75 million, or 9 cents per share, a year earlier.
Wall Street analysts on average had expected 17 cents a share, according to Reuters Estimates.
“It was a mixed report,” said Tim Ghriskey, fund manager at Solaris Asset Management. “Very rarely a company reports a disappointment in revenue and then raises the guidance.”
Xerox raised its 2004 profit target to a range of 80 cents and 84 cents a share, from a previous target of 67 cents to 72 cents a share.
The raised outlook includes a gain of 8 cents a share taken in the first quarter on the sale of a stake in ContentGuard, which will be partially offset by increased marketing and restructuring costs equal to 4 cents a share in the second half of the year, Xerox said.
The 8-cent gain had been included in the company’s prior full-year outlook.
Shares of Xerox rose 50 cents to $13.81 in early trade on the New York Stock Exchange.
Second-quarter revenue declined 2 percent to $3.85 billion from $3.92 billion. The average Reuters estimate was $3.96 billion, with a low end of $3.87 billion.
Xerox Corp. Chief Executive Anne Mulcahy on Friday said she remained confident in earnings expectations for 2005 and raised the 2004 outlook.
The company affirmed its earlier estimates for 2005 earnings per share of 90 cents to $1.
Analysts, on average, expected earnings of 91 cents a share for 2005, according to Reuters Estimates.
Xerox raised its 2004 earnings outlook to a range of 80 cents to 84 cents a share from its earlier view of 67 cents to 72 cents.
"We now believe 2004 full year earnings will be around 82 cents per share," Mulcahy told analysts. "However, due to fluctuating market conditions, we're most comfortable with the range of 80 to 84 cents per share."
