Shares of Xerox Drop on Lower Revenue and Profits
Xerox shares have dropped on Monday morning after the printer and copier behemoth posted that its profits in the first quarter had plunged by 84% and its revenue dropped by 4% amidst the continued weakness of foreign currencies against the U.S. dollar and more restricting costs.
The firm, based in Connecticut posted earnings that fell short of forecasts on Wall Street, but reaffirmed some of its guidance.
Shares of Xerox were lower by 4.66% in trading before the opening bell on Monday.
Revenue for the 2016 first quarter reached $4.28 billion, which was down by 4% for the same period one year ago.
However, the results topped the earnings forecast from economists of $4.23 billion.
Profits for the first quarter were $34 million equal to 3 cents a share, down sharply from their $225 million and 19 cents a share in 2015.
Revenue from major currencies in Europe and the dollar in Canada comprise close to 24% of the total consolidated revenue in Xerox, and those currencies came in 4% weaker
Revenue from major currencies in Europe and Canadian dollar represent 4% weaker than at the same time waster.
Xerox posted its quarterly earnings of 3 cents a share and adjusted earnings that reached 22 cents a share, which was less than the 23 cents a share predicted by analysts.
The company projected its GAAP earnings a share of between 6 cents and 8 cents, while adjusting earnings were between 24 cents and 26 cents per share.
Xerox affirmed its financial guidance for its adjusted earnings per share of between $1.10 and $1.20.
Xerox affirmed its financial guidance for its full year adjusted earnings per share of between 45 cents and 55 cents, which was down from the countries previous plan of sprinting 66 cents.