Ask Matt: Can Xerox copy its past success?

Q: Can Xerox copy its past success?

A: It’s hard to recall now, but Xerox (XRX) was at the forefront of technology. But now, Xerox investors know more about restructuring than innovation, and returning to the good old days of growth isn’t likely.

Shares of Xerox fell more than 11% Monday to below $10 a share after the company reported an adjusted quarterly profit of 22 cents a share, which missed expectations by 4%, S&P Global Market Intelligence says. The company’s quarterly revenue of $4.3 billion beat expectations but was down 4% from the same period a year ago. The company’s revenue missed expectations in the previous 12 quarters, S&P Global says. The biggest challenge in the business is the traditional document technology unit. Revenue there fell by 10% during the quarter.

Selling printers and copiers just isn’t the growth business it was. The company tried to offset weakness in office equipment by buying business services companies. But Xerox has now announced plans to spin off its business services unit, Affiliated Computer Services, into a separate company.

Investors are watching to see how the company balances restructuring costs. Revenue is expected to fall 4% in 2016 to $17.5 billion, but cost savings should push earnings up 13%, analysts forecast.

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.