Xerox 3Q Earnings Remain Flat

Xerox’s earnings report for 3Q2013 shows total revenues of $5.3 billion, flat compared with the prior year. Operating margin for 3Q2013 was 9.4%, up by 0.5 points year-over-year, and gross margin achieved 31.5%. Selling, administrative and general expenses commanded 19.3 % of the revenue.

Revenue from the company’s service business now represents 56% of Xerox’s total earnings, up by 3% with a segment margin of 9.9%. The company’s document technology revenue decreased 4% (5% in constant currency) with a segment margin of 12.1%.

Analyzing Xerox’s performance, Ursula Burns, Xerox Chairman and Chief Executive Officer said, “This quarter shows how we are successfully capturing the benefits of a diversified portfolio. In document technology, revenue declines stabilized with continued good profitability. We continue to see demand from small and midsize businesses in the United States, and positive trends in the high end of our business.”

Xerox is anticipating 4Q2013 GAAP (generally accepted accounting practices) earnings of 24 to 26 cents per share and adjusted earnings per share (EPS) of 28 to 30 cents. Further, it expects full-year 2013 GAAP EPS from continuing operations of 93 to 95 cents, and adjusted EPS of $1.08 to $1.10.