Falling Dollar Lifts Xerox

The company easily beat earnings estimates on a small rise in revenue.
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Xerox's

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fourth-quarter earnings rose by a factor of 11 over last year as the copier maker cut overall expenses and saw revenue aided by currency translation.

The company earned $222 million, or 22 cents a share, on revenue of $4.29 billion in the latest quarter compared with earnings of $19 million, or 1 cent a share, on revenue of $4.25 billion a year ago. The latest quarter included a gain of 3 cents a share from the reversal of a litigation reserve.

Analysts surveyed by Thomson First Call were forecasting earnings of 15 cents a share, excluding the gain. The consensus revenue estimate was about $4.18 billion.

The company had $120 million of pretax restructuring and impairment charges in the latest quarter compared with $408 million in the year ago period. Total costs and expenses were $3.96 billion in the latest quarter compared with $4.31 billion a year ago. Overall revenue rose by 1% from a year ago, but the comparison was aided by 6 percentage points from currency translation. Equipment sales grew 11% in the fourth quarter including a currency benefit of 7 percentage points.

The shares were recently up 85 cents, or 6.1%, to $14.80 on the Instinet premarket session.