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.

Fujifilm Agreement

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.

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