Xerox Surpasses Q4 Earnings And Revenue Estimates

Xerox Corporation (XRX – Free Report) reported year-over-year growth in revenues and adjusted earnings per share in fourth-quarter 2017 by reprioritizing investments and accelerating its restructuring actions.

Quarter Details

Adjusted earnings from continuing operations were $274 million or $1.04 per share in the reported quarter compared with $264 million or $1.00 per share in the year-earlier quarter. Adjusted earnings comfortably beat the Zacks Consensus Estimate of 94 cents. The year-over-year increase in adjusted earnings was aided by higher revenues. Also, despite rise in operating expenses, lower restructuring costs resulting from its strategic transformation program and lower interest expenses supported earnings.

For the reported quarter, the company incurred a GAAP loss of 76 cents per share compared with a loss of $3.30 in the year-ago quarter. GAAP loss from continuing operations were 78 cents per share compared with loss of 70 cents in the year-ago quarter.

The company reported adjusted earnings of $3.48 per share for full-year 2017. GAAP earnings for the year were 71 cents per share against loss of $1.93 in the prior year.

Total revenues for the quarter were $2,747 million compared with $2,734 million in the year-ago quarter. Quarterly sales exceeded the Zacks Consensus Estimate of $2,645 million. Product innovations boosted revenues with equipment sales of $682 million, up 4.3% year over year.

For 2017, the company reported total revenues of $10,265 million compared with $10,771 million in the previous year.

Xerox Corporation Price, Consensus and EPS Surprise

Xerox Corporation Price, Consensus and EPS Surprise | Xerox Corporation Quote

Margins

The company reported adjusted gross profit for the quarter of $1,111 million compared with $1,101 million in the prior-year quarter. The company reported adjusted operating profit of $395 million compared with $388 million a year ago. Adjusted gross margin was 40.4% compared with 40.3% in the prior-year quarter. Adjusted operating margin was 14.4% compared with 14.2% in the prior-year quarter.