Xerox Corp. (XRX) Reports In-Line Q3 EPS; Guides Q4, FY16 Inline with Views; Updates on Separation
Xerox Corp. (NYSE: XRX) reported Q3 EPS of $0.27, in-line with the analyst estimate of $0.27. Revenue for the quarter came in at $4.2 billion versus the consensus estimate of $4.31 billion.
"In an important period for Xerox when our separation-related activities ramped up significantly, we delivered solid financial results despite challenging market conditions. This reflects our commitment to executing on all aspects of our ambitious agenda, including our strategic transformation and achieving our 2016 financial objectives,” said Ursula Burns, Xerox chairman and chief executive officer.
Separation Update - Xerox continued its progress toward the planned separation and remains on track to complete it by year end. Highlights include:
- Xerox’s credit ratings remain investment grade following recent updates from the major rating agencies. Conduent Incorporated is expected to be a high non-investment grade rated company following the separation. These ratings are in line with management’s expectations.
- Brian Webb-Walsh will serve as chief financial officer of Conduent, upon completion of the separation. Webb-Walsh is currently the CFO for Xerox Services and has twenty years of experience with the company in various finance roles.
- Several amendments to Conduent’s Form 10 registration statement have been filed with the U.S. Securities and Exchange Commission. They included additional information about Conduent’s pro-forma capitalization and financial results and named the majority of its executive officers and seven out of the nine directors that will form Conduent’s board.
- The company unveiled the new Conduent logo and visual identity which will distinguish the brand and provide a means for describing the company’s positioning, business model and key stakeholders. Conduent’s stock will trade on the New York Stock Exchange (NYSE) under the symbol “CNDT.” Xerox will continue to trade on the NYSE as “XRX.”
GUIDANCE:
Xerox Corp. sees Q4 2016 EPS of $0.32-$0.35, versus the consensus of $0.34.
Xerox Corp. sees FY2016 EPS of $1.11-$1.14, versus the consensus of $1.13.
For earnings history and earnings-related data on Xerox Corp. (XRX) click here.