Xerox earnings top estimates; revenues decline

Jan 29, 2019
Originally published on January 29, 2019 6:00 pm

Xerox is reporting fourth-quarter earnings that beat Wall Street expectations. The company earned $1.14 per share, about .10 above analysts’ estimates.

But revenues came in a little less than Wall Street anticipated. Sales totaled $2.53 billion, less than the $2.56 billion expected.

Revenues saw a decrease of 7.8 percent compared to last year at this time, or 6.1 percent without the impact of currency fluctuations.  Xerox earned $137 million in the quarter, compared to a $190 million loss at this time last year. Last year’s earnings were impacted by a charge related to tax reform.

Xerox Vice Chairman and CEO John Visentin said that, “Our Q4 results reflect continued progress on our strategic initiatives to optimize our operations, reenergize our innovation engine and increase shareholder returns. We remain focused on removing complexity in the way we work, organizing more effectively, and creating a better customer experience, and we are seeing those efforts reflected in this quarter’s results. We are well positioned as we enter 2019 to continue to build on all our initiatives to deliver greater shareholder value.”

Xerox also provided guidance about earnings in the next fiscal year that were higher than Wall Street estimates, and the stock rose more than percent  on Tuesday, closing up $2.77 at $27.07.

Xerox is anticipating about a five percent decline in revenues (on a constant currency basis) for the next fiscal year.

For 2018 overall, Xerox earned $361 million, compared to $195 million the previous year.

In terms of the revenue drop in the fourth quarter, the company saw lower equipment sales as well as what are called ‘post-sale’ revenues, which includes various supplies, equipment maintenance, services and financing.

In the fourth quarter, Xerox says it cut about 850 employees worldwide, mostly in its international operations.

The company’s earnings in the quarter were helped by cutting expenses. Xerox officials say they will have more information about the company's strategy at its 'Investor Day' in New York City on Tuesday, Feb. 5.