Xerox Corp. announces third-quarter earnings

On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.23 per share for the quarter.

Revenue fell 9.6 percent to $4.33 billion.

In July, the company projected earnings of $0.69 to $0.75 per share and adjusted earnings at the lower end of the $0.95 to $1.01 per share range. The year-over-year decrease in revenues was attributable to decline in revenues in all segments and adverse currency exchange rates.

Xerox also reported its first net loss since the first quarter of 2010, but profit excluding restructuring costs inched past market expectations. This includes services which support all enterprises through offerings, such as customer care, finance and accounting and human resources, as well as vertically focused offerings in areas, such as healthcare, transportation, retail and telecommunications, among others.

The company saw a net loss of $34 million, with sales overall down about 10 percent. Revenues from DO decreased 3% year over year to $800 million as growth in the partner print services offerings was offset by continued declines in developing markets. Signings decreased 7% year over year.

Revenue from the company’s Document Technology business was $1.8 billion, down 12 percent or 9 percent in constant currency. The segment’s margin was 12.8 percent, down 1.2 percentage points.

Net cash provided by operating activities for the quarter stood at $271 million versus $595 million in the year-ago period.

“I expect them to sharply curtail their share repurchases until the company is in better shape financially”, said Argus Research analyst Jim Kelleher.

For full-year 2015, Xerox expects GAAP earnings in the range of 46 cents to 52 cents per share and adjusted EPS in the range of 95 cents to $1.01. “Although we already have taken steps to accelerate cost reductions and prioritize investments to drive improved productivity and higher margins, our Board determined that undertaking a comprehensive review of structural options for the company’s portfolio is the right decision at this time”.

Analysts on average had expected a profit of $0.23 per share and revenue of $4.54bn, according to Capital IQ.

Further, Xerox said it expects fourth-quarter 2015 GAAP earnings of $0.23 to $0.25 per share and adjusted earnings per share of $0.28 to $0.30 per share.