Xerox, named the "Stock of the Day" on CNBC's Squawk Box segment Friday, posted higher-than-expected first-quarter operating profit, based on increasing orders for its document management and printing services from small businesses and emerging markets.
Shares of the world’s No. 1 supplier of digital printers and document management rose 10 percent within 30 minutes after the opening bell.
However, the company reported a net loss of $42 million because of one-time costs related to layoffs and its acquisition of Affiliated Computer Services; excluding one-time costs, Xerox earned 18 cents per share.
Xerox said it expects a second-quarter profit of 20 cents to 22 cents a share, and a 2010 profit at the high end of its previous guidance of 75 cents to 85 cents per share.
Ben Reitzes, IT hardware analyst at Barclays Capital, told CNBC earlier this week that the overall picture for Xerox looks good. (Watch Reitzes' interview with CNBC here).
He said that the ACS acquisition has produced "gravy" for Xerox, and that Japanese copier competitors have been ceding market share to Xerox recently. He expects the corporation to buy back hundreds of millions of shares in the second half of 2011.
The Norwalk, Conn.-based multinational has 130,000 employees worldwide. On May 20, the day of the annual Xerox shareholders’ meeting, Chairman Anne M. Mulcahy will retire and the current Chief Executive, Ursula M. Burns, will also assume the chairman role.
Xerox competes with Canon , Hewlett Packard and Ricoh.
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