Xerox Sees FY15 Earnings Below Street - Update

(RTTNews) - Document management company Xerox Corp. (XRX), Tuesday detailed its earnings outlook for the full-year 2015, which is indicated to miss current Wall Street expectations. The company maintained its outlook for the current full year.

The New York-based company now expects full-year 2015 earnings in the range of $0.93 to $0.99 per share and adjusted earnings of $1.11 to $1.17 per share. Xerox's outlook includes an impact from higher pension settlement expense of $0.06 per share. Analysts polled by Thomson Reuters currently estimate earnings of $1.18 per share for the year. Analysts' estimates typically exclude one-time items.

Meanwhile, the company maintained its full-year 2014 earnings outlook of $0.93 to $0.95 per share and adjusted earnings of $1.11 to $1.13 per share. Analysts currently expect earnings of $1.12 per share for the year.

Xerox, known for its printers and copiers, said its board has approved $1.5 billion increase to its current share buyback program. The company plans to spend $500 million on acquisition and $300 million on dividends.

Xerox, under Chief Executive Ursula Burns, is shifting away from its traditional printing business and investing more on document management, bill processing and other outsourcing services, which now generate about 57 percent of its revenues. Use of printers and copiers in offices have drastically declined as users access their documents on tablets and smartphones.

Last month-end, Xerox reported a lower profit for its third quarter as document technology revenues dropped.

XRX is currently trading at $13.48, up $0.11 or 0.82%, on the NYSE.