Xerox Corporation (XRX) reported fourth quarter results that met Wall Street’s expectations, but its 2011 guidance was disappointing, sending shares down nearly 10% in early trading.
The document management giant posted adjusted earnings of $0.29 per share for the quarter, narrowly topping the $0.28 expected by analysts, and matched the consensus revenue view with $5.98 billion in sales. Revenue was up 42% for the quarter and 43% for the full year, while net income fell 6% compared to the same period last year and grew by 23% for the full year.
Looking ahead to 2011, Xerox sees adjusted first quarter earnings of $0.20 to $0.22 per share and full-year adjusted EPS of $1.05 to $1.10. Analysts are expecting an EPS of $0.22 for Q1 and $1.10 for the full year, the very top of the ranges given by Xerox.
Shares of XRX dropped as low as $10.30 (-9.65%) during the first hour of trading, where they feature a 1.65% dividend yield. A falling share price is apparently the only way to get Xerox’s dividend yield to rise, as the company hasn’t given shareholders a single raise since reinstating its quarterly dividend in 2007.