Xerox (XRX) Shares Crushed Following Q4 Numbers; Sees Near-Term Margin Pressure
Xerox Corp. (NYSE: XRX) shares are getting pummeled Wednesday following the company's fourth-quarter results.
Revenue for the business process and document management company was just about flat, moving from $5.964 billion during the fourth quarter of last year to $5.976 billion. Revs were shy of Street views calling for $6.07 billion.
Net income at Xerox made a 119 percent increase to $375 million, or 26 cents per diluted share, compared to $171 million reported in the fourth quarter of 2010. Earnings excluding the amortization of intangibles came in at 33 cents per share, which was in-line with views.
Xerox generated $117 million of net cash in the period, down from $236 million the prior year.
Fourth-quarter signings increased 15 percent, and the company said the signings "would put near-term pressure on gross margins" as Xerox makes initial investments to implement new contracts.
Xerox also announced the Board authorized the addition of $500 million to the company's current buyback program.
Looking ahead, Xerox sees first-quarter adjusted earnings of 21 cents to 24 cents per share and fiscal 2012 earnings of $1.18 to $1.18 per share. The Street is currently expecting earnings of 24 cents and $1.16 per share, respectively.
Xerox is about 11 percent lower heading into afternoon trading Wednesday.
Revenue for the business process and document management company was just about flat, moving from $5.964 billion during the fourth quarter of last year to $5.976 billion. Revs were shy of Street views calling for $6.07 billion.
Net income at Xerox made a 119 percent increase to $375 million, or 26 cents per diluted share, compared to $171 million reported in the fourth quarter of 2010. Earnings excluding the amortization of intangibles came in at 33 cents per share, which was in-line with views.
Xerox generated $117 million of net cash in the period, down from $236 million the prior year.
Fourth-quarter signings increased 15 percent, and the company said the signings "would put near-term pressure on gross margins" as Xerox makes initial investments to implement new contracts.
Xerox also announced the Board authorized the addition of $500 million to the company's current buyback program.
Looking ahead, Xerox sees first-quarter adjusted earnings of 21 cents to 24 cents per share and fiscal 2012 earnings of $1.18 to $1.18 per share. The Street is currently expecting earnings of 24 cents and $1.16 per share, respectively.
Xerox is about 11 percent lower heading into afternoon trading Wednesday.