Xerox Reports Q3 EPS In Line With Its Guidance, Revenue Down 3%

(RTTNews) - Xerox (XRX) reported third-quarter adjusted earnings of $286 million or $0.27 per share compared to $289 million or $0.27 per share, last year. On average, 12 analysts polled by Thomson Reuters expected the company to report profit per share of $0.27 for the quarter. Analysts' estimates typically exclude special items. The company noted that its adjusted EPS excluded $105 million or $0.10 per share of after-tax costs related to the amortization of intangibles, restructuring and related costs, certain retirement related costs and separation costs.

Xerox reported third-quarter GAAP EPS from continuing operations of $0.17 cents, up 21 cents compared to the same period last year, primarily due to a prior-year charge related to the company's Health Enterprise strategy change.

Third-quarter total revenue of $4.21 billion was down 3 percent year-over-year, or 4 percent on an adjusted constant currency basis. Analysts expected revenue of $4.31 billion for the quarter.

For fourth-quarter 2016, Xerox expects GAAP earnings of $0.11 to 0.14 per share and adjusted EPS of $0.32 to $0.35 per share. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.34.

The company narrowed its full-year guidance for GAAP EPS to $0.45 to $0.48 and for full-year adjusted EPS to $1.11 to $1.14. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.13.

Xerox continues to expect full-year 2016 cash flow from operations of $950 million to $1.2 billion and free cash flow of $600 to $850 million. The company reported continued progress on its strategic transformation program and remains on track to complete its planned separation into two independent, publicly traded companies by year end.