Xerox Corp. (XRX) Tops Q4 EPS by 22c, Revenues Beat; Offers FY20 EPS Guidance Above Consensus

Xerox Corp. (NYSE: XRX) reported Q4 EPS of $1.33, $0.22 better than the analyst estimate of $1.11. Revenue for the quarter came in at $2.44 billion versus the consensus estimate of $2.41 billion.

“We are delivering on our three-year plan. We grew earnings per share, increased cash flow and expanded adjusted operating margin for the full year, and we improved our revenue trajectory in the second half of the year as our investments in the business gained traction,” said Xerox Vice Chairman and CEO John Visentin. “We accomplished this while returning more than 70 percent of free cash flow to shareholders, paying down approximately $950 million in debt and increasing investments in our innovation areas. We are well-positioned to carry this momentum into 2020 and lead the way for long-overdue industry consolidation.”

GUIDANCE:

Xerox Corp. sees FY2020 EPS of $3.60-$3.70, versus the consensus of $3.51.

The company expects continued progress on its strategic initiatives, as projected in its 2020 financial guidance:

• Revenue decline of approximately 4 percent at constant currency, excluding revenue from the $77 million OEM license in 2019.2
• Adjusted operating margin of approximately 13 percent.
• GAAP EPS from continuing operations in the range of $2.80 to $2.90.
• Adjusted EPS in the range of $3.60 to $3.70.
• Operating cash flow from continuing operations of approximately $1.3 billion and free cash flow of approximately $1.2 billion.
• Company expects at least $300 million of share repurchases and return of at least 50 percent of annual free cash flow to shareholders in 2020.

For earnings history and earnings-related data on Xerox Corp. (XRX) click here.

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