Xerox Earnings Up for Third Quarter, Raises Forecast

Xerox today reported financial results for its third quarter that ended on September 30, 2019. Net income rose to $221 million, or 96 cents a share, versus $89 million, or 34 cents a share, versus the third quarter a year ago, while revenue was $2.2 billion, a 6.5-percent decline year-over-year. Operating income for the quarter was $267 million, up 12.1 percent year-over-year.

Xerox increased its 2019 guidance for earnings per share (EPS) from $3.10 – $3.20. It reported that it had  completed $368 million of share repurchases through the third quarter, expecting at least $600 million in total for the year

Xerox Vice Chairman and CEO John Visentin commented:  “Our strategy and execution delivered a strong third quarter despite industry headwinds. We increased cash flow, earnings per share and adjusted operating margin while we improved the revenue trend. These results give us confidence to raise our earnings and cash flow guidance for the year as we position Xerox for long-term growth.”

Xerox also said its multi-year Project Own cost-cutting program has contributed $640 million of savings so far in 2019.

Other highlights for Xerox’s third quarter include its addition and renewal of several contracts with Fortune 500 and public sector clients such as AstraZeneca, Leonardo S.p.A., Cardiff Council, and Prince George’s County Public Schools.

Third-quarter Hardware Installations

Third-quarter printer and MFP installations were as follows:

Entry A4 MFPs: color up 10 percent; B&W down 6 percent
Mid-Range:  color up 2 percent; B&W down 20 percent
High-End: color up 12 percent; B&W down 22 percent

Declines to Sell Financing Business

Xerox also announced today that it’s completed its evaluation of its customer financing business and will not seek to sell the business at this time. It said it received and reviewed bids from multiple potential parties that were interested in purchasing the business at an “attractive premium” but ultimately determined that retaining and optimizing the business through Project Own will generate the greatest return for shareholders.

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