Photocopier and printer maker Xerox
Corporation(NYSE:XRX) on Tuesday lowered its earnings outlook for the current
quarter, citing costs associated with restructuring.
The company expects adjusted profit of 28 to 30 cents
per share for the quarter, down from its prior guidance of 33 to 35 cents per
share. Analysts predicted earnings of 32 cents per share.
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For 2013, Xerox Corp. anticipates adjusted earnings of
$1.09 to $1.15 per share, bracketing Wall Street's prediction of $1.12 per
share.
Xerox now expects a fourth-quarter restructuring
charge of $100 million, or 5 cents per share. It had said late last month that
it expected to book a charge of $50 million to $100 million for the quarter
ending in December, primarily focused on its services division.
However revenues are seen to rise unchanged at 2
percent.
Analysts expect revenue of $22.48 billion, an increase
of less than 1 percent from their revenue prediction for 2012 of $22.34
billion.
Xerox is also planning to return more cash to its
shareholders in the form of higher dividend pay-outs and raising the value of
its stock buyback program.
It is raising its quarterly dividend by 1.5 cent, or
35 percent, to 5.75 cents and increasing its stock buyback program by $1
billion. Buybacks can make investors' stakes more valuable and support earnings
per share.
The company plans to spend $900 million to $1.1
billion on buybacks in 2012 and will put at least $400 million toward buybacks
next year.
Shares of XRX rose 1.42%.
Meanwhile The Home Depot, Inc.(NYSE:HD) earned 74
cents a share in the third quarter, beating estimates of 70 cents a share.
Third-quarter revenue also beat estimates coming in at $18.1 billion compared
to estimates of $17.9 billion.
The retail chain also raised its full-year earnings
forecast to $3.03 per share on an adjusted basis. Analysts had expected $2.97 a
share.
Shares of the company rose 3.63% to $63.38.
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