Xerox Announces Q2 Revenue Decline, But Reports an Increase in Cash Flow
Xerox announced its second quarter 2019 financial results.
Second-Quarter 2019 Financial Summary:
- $313 million of operating cash flow, up $78 million year-over-year, and $297 million of free cash flow, up $94 million year-over-year
- GAAP earnings per share (EPS) of $0.77, up $0.35 year-over-year, and adjusted EPS of $0.99, up $0.19 year-over-year
- Adjusted operating margin of 12.7%, up 170 basis points year-over-year
- $2.3 billion of revenue in the quarter, a decrease of 8.8% in actual currency, or 7.2% in constant currency, year-over-year
- Adjusting full-year revenue guidance to approximately 6% down at constant currency
- Maintaining full-year guidance for EPS, adjusted operating margin and free cash flow
- Completed $300 million of share repurchases year-to-date, expecting at least $600 million in total for the year
“This quarter we delivered improvements in EPS, adjusted operating margin and free cash flow largely underpinned by our enterprise-wide transformation initiative, Project Own It. These results have enabled us to increase planned investments for the second half of the year to support our revenue roadmap while maintaining our full-year guidance for EPS, adjusted operating margin and free cash flow,” said Xerox vice chairman and CEO John Visentin.
Key Financial Results:
Key Business Highlights:
- Investing in revenue-generating initiatives including, but not limited to:
- Adding new revenue streams for software and services targeting small and medium-sized businesses through partnerships with HP and American Express;
- Expanding Xerox Business Solutions’ (XBS) IT Services capabilities to capitalize on this growing $95 billion market in the United States;
- Acquiring two new multi-brand dealers, Rabbit Office Automation and Heritage Business Systems, to grow XBS’ foothold in key markets;
- Launching new products such as the Xerox Baltoro HF Inkjet Press and the Xerox Adaptive CMYK Plus Technology to capture incremental production volume.
- Added and renewed several multi-year contracts with Fortune 500 and public sector clients such as Morgan Stanley, the Commonwealth of Massachusetts and the County of San Diego;
- On track to drive gross savings in 2019 of at least $640 million under Project Own It, Xerox’s enterprise-wide initiative to simplify operations, drive continuous improvement and free up capital to reinvest in the business.
The preceding press release was provided by a company unaffiliated with Printing Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of Printing Impressions.