Xerox Revenue Down for Third Quarter, but Earnings per Share Up

Xerox today reported results for its third quarter, with earnings per share (EPS) of 65 cents, up 1.5 percent year-over-year. Total revenue for the third quarter was $2.5 billion, down 5.0 percent.

Net income for the third quarter was $179 million, down 2 percent from the $183 million reported for third-quarter 2016.

Xerox CEO Jeff Jacobson commented: “We posted another solid quarter of earnings, margins, and cash flow in line with our expectations, supported by our on-going Strategic Transformation initiatives. Revenue decline improved sequentially which we expect to carry through the rest of the year. All 29 of our new ConnectKey-enabled office products are now available and shipping to large and small customers around the globe; momentum is building, as expected, entering the last quarter of the year.”

Equipment revenue was down 9.1 percent. Operating cash flow from continuing operations was a $383 million use of cash and included $671 million in pension contributions, which reflect the incremental $500 million contribution to pension plans that Xerox announced in September. Excluding total pension contributions in both years, operating cash flow increased $44 million year-over-year.

Full-Year 2017 Forecast

Xerox updated its full-year 2017 EPS guidance from to $1.97 to $2.13 (from a previous $1.84 to $2.08). It also revised its operating cash flow from guidance to reflect pension contributions, the elimination of certain accounts receivable, sales programs, and higher operational cash flow. The company expects to end the year with more than $1.0 billion of cash on its balance sheet.

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