Sales down 7%
Xerox Beats Expectations in 4th Q
Tuesday January 28, 4:31 pm ET
Xerox Corp. Beats Analyst Expectations in Fourth Quarter; Shares Jump
STAMFORD, Conn. (AP) -- Xerox Corp. shares jumped more than 17 percent by midday Tuesday after the business machines maker reported it earned $19 million in the fourth quarter, much better than analysts had expected.
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Earnings per share for the three months ending Dec. 31 were 1 cent, in contrast to a loss of $140 million, or 19 cents per share, in the same quarter of 2001.
The consensus estimate from analysts surveyed by Thomson First Call was for a loss of 11 cents per share for the latest quarter.
Revenue fell 3 percent to $4.25 billion from $4.38 billion in the year-ago quarter.
"It was a powerful quarter, reflecting our disciplined execution and intense focus on strengthening every area of our business," Xerox chief financial officer Lawrence Zimmerman said in a midmorning conference call.
Stock in Xerox climbed $1.40, or 17.4 percent to close Tuesday at $9.45 per share on the New York Stock Exchange.
The 2002 results reflect a restructuring charge of 34 cents per share and a tax benefit of 11 cents per share related to the completion of a tax audit. Thomson First Call said its analyst survey included those items.
"Xerox's fourth-quarter results demonstrate exceptional operational performance and increased revenue in important markets, including office multifunction, production color, and monochrome production publishing," said Chairman Anne M. Mulcahy.
Xerox said revenues in the fourth quarter, while down from the year earlier, were better than in the third quarter and reflected interest in a number of new products and the success of its DocuColor series.
For all of 2002, Xerox reported a profit of $91 million, or 2 cents per share, in contrast to a loss of $94 million, or 15 cents per share, in 2001. Revenue fell 7 percent to $15.85 billion from $17 billion in 2001.
Mulcahy reaffirmed the company's estimate of per-share earnings in 2003 in the range of 50 cents to 55 cents, and said that forecast did not assume a significant improvement in the economy.
But the company has accelerated its restructuring and strengthened its financial position to take advantage of any improvement that may occur, she said.
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