Xerox reported $2.2 billion of revenue in the quarter, a decrease of 6.5% in actual currency, or 5.3% in constant currency, year-over-year. The company recorded $356 million of operating cash flow, up $82 million year-over-year, and $339 million of free cash flow, up $88 million year-over-year
GAAP earnings per share (EPS) were $0.96, up $0.62 year-over-year, and adjusted EPS of $1.08, up $0.23 year-over-year (YOY). Adjusted operating margin was 12.1%, up 120 basis points year-over-year.
Increasing 2019 guidance for GAAP EPS is $3.10 - $3.20, adjusted EPS to $4.00 - $4.10, operating cash flow to $1.2 billion to $1.3 billion and free cash flow of $1.1 billion to $1.2 billion.
Xerox completed $368 million of share repurchases through the third quarter, expecting at least $600 million in total for the year.
“Our strategy and execution delivered a strong third quarter despite industry headwinds. We increased cash flow, earnings per share and adjusted operating margin while we improved the revenue trend. These results give us confidence to raise our earnings and cash flow guidance for the year as we position Xerox for long-term growth,” said John Visentin, Xerox vice chairman and CEO.
Xerox also reported that it is on track to drive 2019 gross savings of at least $640 million under Project Own It, Xerox’s enterprise-wide initiative to simplify operations, drive continuous improvement and free up capital to reinvest in the business.