Xerox Corp. said it would increase its sales of hardware and business services as much as 8 per cent by 2012, which sent its shares higher in premarket trading Tuesday.
The company said its revenue would increase 4 per cent to 6 per cent by 2012, and its EPS would be $1.18 to $1.28 (U.S.) per share in that period, according to a statement released on its investor day on Tuesday. Analysts’ average estimates for 2012 are for earnings of $1.23 per share, according to Thomson Reuters I/B/E/S.
For 2011, the company maintained its full-year earnings outlook of $1.05 to $1.10 per share, which on the high end exceeds analysts’ average estimates of $1.08 per share.
Xerox, best known for selling its printing products, has shifted to become a more services-based company. It said a higher percentage of its revenue will come from its services business and that unit is expected to grow 6 per cent to 8 per cent by 2012.
The company’s technology business, which focuses on selling Xerox products such as copiers and printers, should increase 1 per cent to 3 per cent by 2012 with its growth driven by more demand for color pages.
The company, which made a major move when it bought services company ACS in 2009 for $6.4-billion, said it would invest about $300-million in acquisitions this year, which should lead to about 1 to 2 points of revenue growth.
Xerox shares rose 2 per cent to $10.35 in premarket trading on the New York Stock Exchange.
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