Xerox posts higher second-quarter net income

Nicole Sheldon//August 1, 2017//

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Xerox Corp. reported Tuesday that its net income climbed 5 percent in second-quarter, but its revenue declined 8.1 percent.

Shares of Xerox (NYSE: XRX) were trading midday around $31.62, up 3 percent from its Monday close at $30.67. Xerox reported adjusted earnings per share of 87 cents, which excludes 24 cents a share of after-tax costs related to the amortization of intangibles, restructuring and related costs, and certain retirement related costs, the company said. That beat the Zacks Consensus Estimate of 84 cents.

The company posted net income attributable to Xerox of $166 million, or 64 cents per share, versus a net income of $158 million, or 60 cents per share, during last year’s second quarter.

During the quarter, the company’s earnings were affected by lower equipment sales as they shifted to the ConnectKey portfolio. ConnectKey is document management software, and Xerox recently increased the range of devices that will be able to use the portfolio.

The company’s logged revenues of $2.57 billion, down from $2.79 billion.

Xerox produced cash flow of $343 million from continuing operations, up from $259 million in the second quarter of the previous year.

“We are pleased with the strong operating margins and cash flow we delivered, as well as the continued progress on our strategic transformation initiatives,” Xerox CEO Jeff Jacobson said in a statement.

The company recently expanded its sales efforts in May with the acquisition by Global Imaging Systems, Xerox company, of MT Business Technologies Inc.

The company narrowed its full-year 2017 guidance of earnings per share from continuing operations to $1.84 to $2.08 and adjusted earnings per share to $3.20 to $3.44. Xerox continues to expect to generate operating cash flow from continuing operations of $700 million to $900 million and free cash flow from continuing operations of $525 million to $725 million in 2017.

Xerox employees nearly 3,800 workers in Monroe County, a slight decline from the previously reported 3,900.