Xerox (NYSE:XRX) stock moved higher after the document management technology and service provider’s second-quarter profit topped expectations and it raised its 2023 guidance.
For 2Q, Xerox (NYSE:XRX) posted adjusted earnings per share of $0.44, up from $0.13 in the year-ago quarter and ahead of the Street expectation per Zacks Consensus Estimate of $0.33.
Revenue rose 0.4% from the comparable period last year to $1.75 billion, slightly below the expected $1.78 billion.
But the revenue miss didn’t dampen sentiment around the stock as Xerox (NYSE:XRX) raised its full-year guidance.
The company now expects an adjusted operating margin in the range of 5.5% to 6% and free cash flow of at least $600 million.
It continues to expect that its 2023 revenue will be flat or down by low single digits in constant currency.
“Over the last 12 months, Xerox has taken significant steps to strengthen its operating and financial discipline, leading to another quarter of profitable growth amid a dynamic macroeconomic backdrop," Xerox CEO Steve Bandrowczak said in a statement.
Xerox shares were 3.9% higher at US$16.10 in pre-market trading on Tuesday.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie