Xerox Corp., the printer and photocopier pioneer, predicted that 2014 earnings will be $1.10 to $1.16 a share, excluding some items, as business services account for a bigger chunk of its revenue.
Earnings will be $1.08 to $1.10 in the current year on that basis, Xerox said today before its annual investor conference, reiterating a previous forecast. Analysts have estimated profit of $1.09 this year and $1.15 in 2014, according to data compiled by Bloomberg.
Chief Executive Officer Ursula Burns is increasingly relying on services to help offset the decline of document printing, which was once the company’s biggest revenue source. Xerox also expects to spend as much as $500 million on acquisitions to help further the expansion.
“Fifty-six percent of our revenue now comes from services and we’re on track to grow that number to 66 percent by 2017,” she said in the statement.
Xerox expects to spend another $500 million on stock buybacks, bringing its repurchase plan to about $1.5 billion, as well as $300 million on dividends.
Shares of the Norwalk, Connecticut-based company rose 4 percent to $10.69. The stock has climbed 57 percent this year.