Xerox Q3 Beats; Boosts ‘09 EPS View; Cautious On Tech Spending

Xerox (XRX) this morning posted slightly better-than-expected Q3 results, but expressed caution about the outlook for tech spending.

The printer and services company reported revenue for the quarter of $3.7 billion and profits of 14 cents a share; the Street had expected $3.63 billion and 14 cents. Revenue was down 16% from a year ago. Equipment sales were down 29%.

For the fourth quarter, Xerox sees profits of 20-22 cents a share, in line with the Street at 21 cents. The company now sees full-year profits of 55-57 cents a share, up from a previous forecast range of 50-55 cents; the Street has been expecting 53 cents.

In a statement, CEO Ursula Burns said “we have not seen a meaningful shift toward increased spending on technology,” adding that for many clients “there remains a hesitancy to invest until more economic factors show signs of steady improvement.” Burns added that Xerox expects that the trend “will continue to put pressure on revenue for the balance of the year.”

XRX today is up 9 cents, or 1.2%, to $7.81.