Home / Industry / Manufacturing / Xerox misses Street expectations for Q1

Xerox misses Street expectations for Q1

Shares of Xerox Corp. were down slightly after the company reported first-quarter financial results that missed Street expectations.

Shares of Xerox (NYSE: XRX) were trading midday around $7, down from its Monday close of $7.06.

The company reported, before markets opened, net income attributable to Xerox of $16 million, or 2 cents a share, versus net income of $34 million, or 6 cents a share, during last year’s first quarter.

Adjusted earnings per share for the most recent quarter was 15 cents, which excludes 13 cents per share of after-tax costs related to the amortization of intangibles, restructuring and related costs, certain retirement-related costs, loss on extinguishment of debt and a tax benefit.

During the quarter, the company’s earnings were affected by a charge related to its equity investment in Fuji Xerox, resulting in a 3 cent reduction in earnings per share, the company reported.

Revenues were $2.45 billion in the quarter, down 6.2 percent from $2.62 billion. Post sale revenue dropped 5.8 percent to roughly $1.95 billion, while equipment sales revenue decreased 7.4 percent to $502 million.

Analysts polled by Zacks Investment Research had expected Xerox to report earnings per share of 16 cents on sales of $2.49 billion.

“I am pleased with our operational results in the first quarter,” said Jeff Jacobson, Xerox CEO in a statement, noting revenue and cash flow were in-line with the company’s expectations. “While we still have a lot to do, we laid the foundation to deliver on our full-year commitments.”

Xerox generated operating cash flow of $190 million from continuing operations during the first quarter and ended the period with a cash balance of $1.05 billion. The company returned $87 million in dividends to shareholders and repaid $1.30 billion of debt.

The company reiterated its full-year 2017 guidance of earnings from continuing operations of 44 to 52 cents a share and adjusted earnings per share of 80 to 88 cents a share.

Xerox announced at the start of the year 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.

In Monroe County, Xerox employs some 3,900 workers. That is down from previously reported local employment of 5,500, but a company spokesman said the updated number is due to a change in the way the company is reporting local employment, not in a headcount reduction.

Follow Andrea Deckert on Twitter: @andrea_deckert

(c) 2017 Rochester Business Journal. To obtain permission to reprint this article, call 585-363-7269 or e-mail madams@bridgetowermedia.com.

Leave a Reply

Your email address will not be published.


Check Also

Ben Miller showing 300mm wafer with biomedical sensor chips for testing. (Provided by AIM Photonics)

AIM Integrated Photonics celebrates five years with a nationally broadcast education program (access required)

It has been five years since then-Vice President Joe Biden stood in Rochester and announced that the region would be ...

The newly named  Aqueduct District complex has good views of the river, to the north and south. (Provided by CBRE Rochester)

New owners of Aqueduct Building envision vibrant, diverse downtown community (access required)

The development team that bought the stately, sprawling Aqueduct Building intends to create a diverse, multi-use riverfront campus that becomes ...


June 5, 2020 (access required)

Shares of Xerox Corp. were down slightly after the company reported first-quarter financial results that missed Street expectations. Shares of ...