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Shares of Xerox (XRX) - Get Xerox Holdings Corporation (XRX) Report soared Tuesday after the printer company reported stronger-than-expected third-quarter earnings.

Adjusted earnings, which exclude non-recurring items, registered $1.08 a share, easily topping analysts' forecast of 87 cents, according to FactSet. Revenue dropped to $2.2 billion from $2.35 billion a year earlier, but blew away expectations of $1.19 billion.

Net income increased to $221 million, or 96 cents a share, from $89 million, or 34 cents a share.

Xerox generated $356 million of operating cash flow, up $82 million year over year, and $339 million of free cash flow, up $88 million. Gross margin dipped to 40.0% from 40.1%.

The company raised 2019 guidance for GAAP EPS to $3.10-$3.20, adjusted EPS to $4.00-$4.10, operating cash flow to $1.2 billion-$1.3 billion and free cash flow to $1.1 billion-$1.2 billion.

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The company's stock traded at $35.30, up 14.65%. It has climbed 77% so far this year.

Prior to the earnings report, Morningstar estimated fair value for the shares at $30 and rated the company at three stars, or fairly valued.

"We think the print industry is in a jam as the workplace becomes increasingly more digital," Morningstar analyst Mark Cash wrote earlier in the year. "In our view, eroding switching costs for Xerox is reflective in their declining equipment market share, as Canon and HP grew share."

The industry woes and competitive positioning are "problematic for Xerox because nearly all of Xerox's offerings are dependent on one another," Cash said.

The author doesn't own shares in any companies mentioned.