Free Post Earnings Research Report: Xerox’s Quarterly Adjusted Earnings Increased 4%; Beat Estimates

Stock Monitor: Acxiom Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 16, 2018 / Active-Investors.com has just released a free earnings report on Xerox Corp. (NYSE: XRX). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=XRX. The Company reported its financial results on January 31, 2018, for the fourth quarter and for the full fiscal year ended December 31, 2017. The Company's results reflected meaningful improvements in revenue, operating margin, and earnings. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Acxiom Corporation (NASDAQ: ACXM), which also belongs to the Technology sector as the Company Xerox. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Xerox most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the fourth quarter of 2017, Xerox's total revenues reached $2.75 billion, up 0.5% from $2.73 billion in Q4 FY16. In constant currency terms, there was a 2% decline in the net revenues for the reported quarter. The Company's revenue numbers exceeded analysts' expectations of $2.65 billion.

During Q4 FY17, Xerox's operating cost and expenses were $2.52 billion, a reduction of 1.33% from $2.56 billion in Q4 FY16. The Company had an operating loss of $193 million in Q4 FY17 compared to an operating profit of $188 million in Q4 FY16, reflecting a decrease of 202.66%. The Company's operating margin was 16.7% for the reported quarter, 2.3% higher than 14.4% in the same period of last year. The Company's adjusted operating margin improved 0.2 points y-o-y to 14.4% in Q4 FY17.

For Q4 FY17, Xerox's net loss from continuing operations attributable to common stockholders was $196 million, or $0.78 loss per share, compared to a net income of $185 million, or $0.71 per share, in Q4 FY16. Xerox's reported quarter results included an estimated non-cash charge of $400 million related to the enactment of the US Tax Cuts and Jobs Act 2017 (TCJA), after-tax costs related to the amortization of intangibles, restructuring and related costs, certain retirement-related costs, and other discrete adjustments. On an adjusted basis, Xerox's net income from continuing operations attributable to common stockholders was $274 million, or $1.04 per diluted share, in Q4 FY17, which was an increment of 4% y-o-y, and was ahead of Wall Street's estimates of $0.94 per share.

For the year ended December 31, 2017, Xerox's total revenues were $10.27 billion, a decrease of 4.70% from $10.77 billion in FY16. The Company's net income from continuing operations attributable to common stockholders was $192 million, or $0.70 per share, for the reported year compared to $622 million, or $2.33 per share, in the prior year. This included the non-cash charge of $400 million associated with the enactment of the TCJA. Excluding special items, Xerox's adjusted earnings per share (EPS) were $3.48 for FY17, which were within the guidance range of $3.28 to $3.44.

Cash Matters

Xerox had cash and cash equivalents of $1.29 billion as on December 31, 2017, a decrease of 41.84% from $2.22 billion as on December 31, 2016. During Q4 FY17, the Company's net cash used in operating activities from continuing operations was $28 million compared to an operating cash inflow of $462 million in Q4 FY16. This included the $350 million impact from the termination of certain accounts receivable sales programs. On an adjusted basis, Xerox's operating cash flow from continuing operations was $322 million in the reported quarter. The Company distributed $68 million in dividends to shareholders in Q4 FY17.

For the year ending December 31, 2017, Xerox's net cash inflow from operating activities from continuing operations was $122 million compared to $1.02 billion in 2016. The Company's adjusted operating cash flow from continuing operations was $972 million in 2017.

Outlook

For the full fiscal year 2018, Xerox estimates GAAP EPS from continuing operations of $2.30 to $2.50, and adjusted EPS of $3.50 to $3.70. The Company expects an improvement in its revenue trajectory, with a decline of 2% - 4% on constant currency. Xerox anticipates its operating margin to be in the range of 13% - 14% in 2018. The Company expects to generate operating cash flow from continuing operations of $900 million to $1,100 million, and free cash flow from continuing operations of $750 million to $950 million in FY18.

Stock Performance Snapshot

February 15, 2018 - At Thursday's closing bell, Xerox's stock advanced 2.38%, ending the trading session at $30.50.

Volume traded for the day: 2.29 million shares.

Stock performance in the previous three-month period – up 8.62%; past twelve-month period – up 2.07%; and year-to-date – up 4.63%

After yesterday's close, Xerox's market cap was at $7.81 billion.

Price to Earnings (P/E) ratio was at 46.78.

The stock has a dividend yield of 3.28%.

The stock is part of the Technology sector, categorized under the Information Technology Services industry. This sector was up 1.5% at the end of the session.

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