Shares of Xerox Corp. were down at midday after the company reported a drop in fourth-quarter sales and profit on Tuesday before markets opened. It was the company’s first report of its financial results since being split into two companies.
Xerox shares (NYSE: XRX) were trading midday around $6.80, down roughly 2 percent from Monday’s close of $6.95.
The company reported net income attributable to Xerox of $181 million, or 17 cents a diluted share, versus net income of $260 million, or 25 cents a diluted share, in the prior year’s quarter.
Excluding special charges, earnings per share for the most recent quarter were 25 cents.
Analysts polled by Zacks Investment Research expected Xerox to report earnings per share of 25 cents.
The company logged revenues of $2.7 billion in the quarter, down 7.2 percent from sales of $2.9 billion the prior year.
Xerox this month announced the completion of its separation into two publicly traded companies: Xerox and Conduent Inc. Xerox consists of the company’s document technology business; Conduent is a business process services company.
“Our fourth-quarter results demonstrate that we are realizing significant benefits from our strategic transformation program,” Xerox CEO Jeff Jacobson said. “With the separation of Conduent now complete, we turn our full attention to delivering on our strategy, which includes pursuing the growing areas of the market.”
For the year, Xerox reported sales of $10.8 billion, down 6 percent from sales of $11.5 billion in 2015. Net income attributable to Xerox was $616 million, or 58 cents a share, down from net income of $848 million, or 78 cents a share. Adjusted earnings per share for 2016 were 88 cents.
During the year, Xerox recorded separation costs of $159 million. In 2017, the company expects to incurred separation costs of some $15 million.
For 2017, Xerox expects earnings from continuing operations of 44 to 52 cents a share; adjusted earnings per share is expected to be 80 to 88 cents a share.
Conduent (NYSE: CNDT) is slated to release its fourth-quarter and year-end financial results on Feb. 22.
In Monroe County, Xerox employs some 5,500 workers; Conduent has slightly more than 600 local employees.
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