Xerox Reports 1Q 2017 Earnings

Xerox announced its first-quarter 2017 financial results. Revenues were $2.45 billion in the quarter, down 6.2% or 4.3% in constant currency. Post sale revenue was 80% of total revenue. First-quarter adjusted operating margin, excluding the impact of the Fuji Xerox charge, was 11.4%, up 0.9% from the same quarter a year ago.
 
 “I am pleased with our operational results in the first quarter,” said Jeff Jacobson, Xerox CEO. “Revenue and cash flow were in-line with our expectations and, despite currency headwinds, operating margin expanded driven by productivity savings from our Strategic Transformation initiatives.”
 
The company delivered first-quarter 2017 GAAP earnings per share (EPS) from continuing operations of 2 cents. Adjusted EPS 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.
 
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 GAAP earnings from continuing operations of 44 to 52 cents per share and adjusted EPS of 80 to 88 cents per share.
 
Xerox continues to expect to generate operating cash flow from continuing operations of $700 to $900 million and free cash flow from continuing operations of $525 to $725 million in 2017.
 
 
April 25, 2017
www.o-i.com