Xerox Beats on Revenue but Misses on Profits

Xerox Corp. reported second quarter financial results last week that revealed a beat on revenue but a miss on profits.

The company, which recently decided to terminate its $6.1 billion merger with Fujifilm Holdings Corp. of Japan, saw a 2.2% drop in revenue for the quarter.

Total revenue fell from $2.57 billion to $2.51 billion. The figure still beat the $2.49 billion that analysts had been expecting.

Net income saw a decline at $112 million, or 42 cents a share. In the year ago period this figure was $166 million, or 63 cents a share. Adjusted earnings per share of 80 cents was 3 cents below what analysts had been expecting.

New CEO Giovanni Visentin stated during the earnings call, “I joined the company
because I saw an opportunity to rebuild Xerox into a leading tech company. I’ve spent considerable time talking with customers, partners and employees. There is one common theme: they want us to succeed. We are an important and often critical component of our customers’ and partners’ work processes and their success. They recognize the quality and ease of use of our products and many have strong personal relationships with our company. Channel partners work with us because of the breadth of our portfolio and because of the support we provide, such as the marketing and training tools and resources that help them grow their business.”

The company has been sued by Fujifilm for over $1 billion, who is seeking punitive damages and a $183 million merger termination fee.

Xerox also authorized a $1 billion share buyback program, with $500 million of repurchases expected this year.

Disclaimer: We have no position in Xerox Corp. (NYSE: XRX) and have not been compensated for this article.