Xerox Corp posted a higher-than-expected first-quarter operating profit, on rising demand for its document management and printing services from small businesses and developing markets.
The world's No. 1 supplier of digital printer and document management services, whose shares rose 8 percent, added that while equipment sales are lagging, businesses are using their printers more, which boosts sales of Xerox's high-margin supplies.
Xerox, which in February closed its acquisition of Affiliated Computer Services, reported a net loss of $42 million, or 4 cents a share, compared with a year-earlier profit of $42 million, or 5 cents a share.
Excluding $135 million in restructuring costs and other special items, earnings were 18 cents a share. Analysts had expected a profit of 13 cents, according to Thomson Reuters
The Norwalk, Connecticut-based company, whose rivals include Ricoh Co <7752.T>, Oce NV , Canon Inc <7751.T> and Konica Minolta Holdings <4902.T> said its revenue rose 33 percent to $4.72 billion, beating analysts' forecasts of $4.65 billion.
The company's results come two days after Ricoh said its operating profit for the fiscal year ended last month would be 44 percent larger than previously forecast due to cost cuts and recovering demand.
Xerox expects a second-quarter profit after items 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.
Analysts had, on average, expected a profit of 18 cents a share in the second quarter and 81 cents for the year.
Shares of Xerox, which have climbed about 25 percent this year, were up 86 cents, or 8 percent, at $11.31.
(Reporting by Franklin Paul; Editing by Lisa Von Ahn and Derek Caney)