Xerox Reports Strong Fourth-Quarter 2017 Results, 65 Dealers Signed
Xerox today reported financial results for its fourth quarter and for the full year of 2017 where it reported total revenue of $2.7 billion, up 0.5 percent, but an earnings per share loss (EPS) of $0.78 per share.
Xerox CEO Jeff Jacobson commented: “With positive results across all metrics, our fourth-quarter performance clearly demonstrates the progress we have made and enabled us to deliver on our commitments for the full-year.” Jacobson also alluded to the Fujifilm and Xerox agreement announced today (see story here): “Building on the positive momentum from 2017, today we announced an
agreement to combine with Fuji Xerox to create a world leader in innovative print technologies and intelligent work solutions. The new company expands the long-standing relationship between Xerox and Fujifilm, and will be better positioned to meet customer expectations and deliver incremental value to our shareholders.”
Fourth Quarter 2017 Results
For the fourth quarter, Xerox recorded an estimated non-cash charge of $400 million related to the enactment of the U.S. Tax Cuts and Jobs Act (U.S. tax reform). Including this charge, the company had a fourth-quarter 2017 loss from continuing operations of 78 cents per share.
It reported a loss of $196 million, versus a loss of $381 million for the same quarter a year earlier.
Revenues were $2.7 billion in the quarter, up 0.5 percent. Xerox says that the successful launch of new products earlier in the year helped drive equipment sale revenue growth of 4.3 percent.
Xerox’s cash balance at the end of 2017 was $1.3 billion. The company returned $68 million in dividends to shareholders in the quarter.
Full Year 2017 Results
Xerox reported total revenue of $10.3 billion, down 4.7 percent, and in line with the company’s guidance of mid-single digits
Adjusted operating cash flow from continuing operations of was $972 million.Adjusted EPS was $3.48 cents, exceeding the company’s guidance range of $3.28 to $3.44.
New Dealers Signed
As part of its channel strategy announced in January 2017, Xerox also reported that it had signed 65 new dealer partners.
Full-Year 2018 Forecast
The company expects 2018 EPS in the range of $2.30 to $2.50 per share. It also expects to generate operating cash flow from continuing operations of $900 to $1,100 million, and free cash flow from continuing operations of $750 to $950 million.
- January 2018: Xerox and Fujifilm Announce Agreement for Xerox to Merge with Fuji Xerox
- October 2017: Xerox Revenue Down for Third Quarter, but Earnings per Share Up
- 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’