NORWALK, Connecticut — Xerox's quarterly profit dropped 20 percent and the company cut its earnings estimate for the full year amid sliding sales and a rising dollar.
The news drove its stock down $1.18, or 9 percent, to $11.96 in Friday afternoon trading.
Before the market opened, Xerox Corp. reported first-quarter net income of $225 million, down from $281 million the year before. Total revenue slipped 6 percent to $4.47 billion. Xerox, which sells copiers and business services, blamed higher costs as well as the stronger U.S. dollar. If the dollar had stayed put in the first three months of the year, total revenue would have slipped 2 percent.
On a per-share basis, the Norwalk, Connecticut, company reported first-quarter earnings of 19 cents. Adjusted for one-time gains and costs, earnings worked out to 21 cents, exactly what analysts' had forecast, according to Zacks Investment Research.
Xerox said it expects to continue wrestling with the same problems, and scaled back its estimate for earnings in 2015. The company now forecasts full-year adjusted earnings in the range of 95 cents to $1.01 per share. It had previously estimated earnings between $1 and $1.06. Analysts had been expecting $1.03 a share, according to FactSet.
For the current quarter ending in June, Xerox expects its per-share earnings to range from 21 cents to 23 cents. Analysts had been forecasting 25 cents a share on average.
Shares in Xerox have dropped almost 14 percent since the beginning of the year, lagging far behind the broader market. The Standard & Poor's 500 index has climbed nearly 3 percent.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on XRX at http://www.zacks.com/ap/XRX