Xerox Corp.’s quarterly profit and revenue rose as it signed up more clients for its business services offerings and it calmed investor fears over the earthquake in Japan affecting its business.
The company did not cut its full year earnings outlook, soothing concerns over supply chain disruptions, specifically its Fuji Xerox operations in Japan, said Cross Research analyst Shannon Cross.
“It sounds like Xerox is doing a good job of finding second sources for its components and also just utilizing their inventory better to ensure their customers don’t see any impacts from Japan,” Ms. Cross said.
Xerox, best known for its copiers and printers, said its first-quarter net income rose to $350-million (U.S.), or 19 cents per share, up from a net loss of $10-million, or 4 cents per share a year earlier.
Adjusted for amortization of intangible assets, its net income was 23 cents a share, which beat analysts’ estimates of 22 cents a share, according to Thomson Reuters I/B/E/S.
The company’s services revenue rose 5 per cent from a year earlier, which analysts said signaled the company was successfully integrating the business services company, ACS, that it bought in 2009.
“There is still growth in services revenue and it provides Xerox with some stability,” said Gabelli & Company analyst Hendi Susanto.
Revenue rose to $5.46-billion from $4.72-billion a year earlier, which narrowly missed analysts’ expectations of $5.47-billion.
The company forecast second-quarter EPS to be 23 cents to 26 cents per share, which are in line with analyst estimates.
The company provided “a broader range than usual” for its second-quarter earnings forecast to take into account the business impact from the earthquake in Japan.
Xerox shares were up 7 cents at $10.92 in premarket trading.