Xerox Rises After Earnings Beat as Company Prepares to Split


Source: Bloomberg Markets

Xerox Corp. rose Friday after second-quarter earnings beat analysts’ estimates and the company said it’s on track with efforts to split into two independent companies.

“We made a great deal of progress on the company’s new path forward during the second quarter,” said Chief Executive Officer Ursula Burns on a conference call. “I am more confident than ever in our ability to create two separate companies.”

The shares rose as much as 3.9 percent, their highest since July 12, to $10.30. They were trading at $10.20 at 11:31 a.m. in New York.

Xerox is splitting its core business into two companies — an $11 billion document technology seller and a $7 billion services department, which will be renamed Conduent Inc. The cost of that separation will be $175 million to $200 million before taxes, Xerox said, lower than a previous estimate of more than $200 million. The move is due to be competed by the end of this year.

Earnings excluding some costs were 30 cents a share, Xerox said in a statement Friday, beating analysts’ average estimate of 25 cents. Revenue fell 4.4 percent to $4.4 billion, but was in line with forecasts.

Source: Bloomberg Markets