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.
- August 2017: Revenues Slow in Xerox’s Second Quarter, but Net Income Up
- April 2017: Xerox Revenue Down, Cites Charge for Fuji Xerox New Zealand Operations
- Fuji Xerox New Zealand’s Parent Company Estimates $285m Losses Caused by Accounting Irregularities
- March 2017: Xerox Reveals its Biggest Product Blitz Ever with New VersaLink, AltaLink ‘Workplace Assistants’
- February 2017: Xerox to Spend $100 Million Acquiring Independent Copier Dealers, Converting them to the Xerox-Only Brand
- January 2017: Revenues Slide for Xerox’s Fourth Quarter, Full Year
- October 2016: Revenues Down, but Net Income up for Xerox’s Third Quarter
- August 2016: Xerox Reports Slight Revenue Decline for Second-Quarter Revenue, But Much Higher Net Income
- July 2016: Fujifilm’s First-Quarter Profits Decline as Shipments of Printers to Xerox Suffer Sharp Decline
- June 2016: Jeff Jacobson to Become CEO of Xerox Document Technology Company
- June 2016: Xerox Document Technology to Retain Xerox Name; BPO Company to be Named ‘Conduent’