Xerox Expects 2014 EPS In Line With Street View, Backs 2013 Outlook

(RTTNews) - Printer and copier company Xerox Corp. (XRX) on Tuesday reaffirmed its earnings guidance for the full-year 2013 and also provided initial earnings forecast for the full-year 2014, in line with Street view. The company revealed this at its annual investor conference earlier in the day while outlining its strategy with a focus on delivering long-term value for shareholders.

Norwalk, Connecticut-based Xerox said it continues to expect earnings from continuing operations in a range of $0.93 to $0.95 per share, and adjusted earnings in the range of $1.08 to $1.10 per share.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.09 per share for fiscal 2013. Analysts' estimates typically exclude special items.

The company also said it still projects 2013 operating cash flow at the high end of its $2.1 billion to $2.4 billion range, which enables greater than $600 million in share repurchase.

Further, the company said it anticipates earnings in the range of $0.93 to $0.99 per share, and adjusted earnings between $1.10 and $1.16 per share. Street is currently looking for full-year 2014 earnings of $1.15 per share.

The company also projects 2014 operating cash flow between $1.8 billion and $2.0 billion, and expects to allocate at least $500 million for stock buyback, and spending up to $500 million on acquisitions and $300 million on dividends.

Additionally, the company's board of directors approved additional $500 million in share repurchases, bringing the current authorizations to about $1.5 billion.

Xerox also detailed its strategy to focus on growth markets and margin expansion to deliver long-term value for shareholders through earnings growth, its strong and diversified portfolio as well as innovative technology and services.

"Fifty-six percent of our revenue now comes from services and we're on track to grow that number to 66 percent by 2017. We're managing our business for growth and margin expansion in services, and for maintaining strong cash flow and market leadership in document technology," Chairman and CEO Ursula Burns said in a statement.

The company will focus on growth through vertical industries such as healthcare with its next generation Medicaid Management Information System and its proprietary software to combat fraud, waste and abuse in healthcare applications.

Xerox is also looking to bring innovation in document printing and maintain its leadership in document technology by eying the growing need for digital printing through its waterless and inkjet-based solutions.

"Investments in services coupled with our expertise in vertical markets gives us the competitive edge needed to provide targeted solutions in a wide variety of industries from customer care and education to transportation and healthcare," Burns added.

XRX closed Monday's regular trading session at $10.28, down $0.03 on a volume of 10.75 million shares.