Copiers maker Xerox Corporation ( XRX ) on Tuesday provided some earnings guidance and unveiled plans for a higher dividend payout and enhanced share buybacks.
The Norwalk, CT-based company forecast adjusted fourth quarter earnings to range from 28 to 30 cents per share, which would miss Wall Street analysts' view of 32 cents. For the full fiscal year 2013, Xerox expects adjusted profit of $1.09 to $1.15 per share, with revenue rising 2%. Analysts are looking for $1.12 per share for the year on 1% revenue growth.
In another announcement, XRX said it plans to raise its quarterly dividend payout by 35% to 5.75 cents quarterly. The change is slated to begin with its upcoming paying in April 2013, and is subject to board approval.
The company also approved the repurchase of an addition $1 billion worth of its own shares.
Xerox shares fell 8 cents, or -1.3%, in premarket trading Tuesday. The stock has plunged more than 20% since the beginning of 2012.
The Bottom Line
Shares of Xerox ( XRX ) have a 2.69% dividend yield, based on last night's closing stock price of $6.33. The stock has technical support in the $5-$6 price area. If the shares can firm up, we see overhead resistance around the $7.00-$7.50 price levels.
Xerox Corporation ( XRX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.8 out of 5 stars.
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