Xerox Earnings – Margins Up, Revenue Down

By Andy Slawetsky – Xerox earnings are out and Wall Street seems very happy with the results as XRX is up 1.40 at the time this was written.

Let’s looks a few things that stuck out in the numbers from the last three months of 2019.

The Good! (In millions)

-Cost of Sales down to $605 from $613 in 2018

-Total Costs and Expenses down to $2,108 from $2,374 in 2018

-Net Income up to $819 from $141 in 2018

-High End Equipment (production) up 1.5%

The Bad (In millions)

-Sales down to $919 from $958 in 2018

-Services, maintenance and rentals were down slightly, but essentially flat

-Entry Level Hardware sales down 4.5%

-Mid Range Hardware sales down 2.4%

-Equipment Sales Revenue down 2.1%

In all, the numbers appear to be improving slowly, but surely. Here’s the Xerox press release below where you can see the full charts for yourself.

Xerox Exceeds Q4 EPS Guidance, Delivers Strong Cash Flow and Operating Margin

Announces 2020 guidance consistent with three-year plan, including further EPS expansion and revenue trend improvement


2019 Full-Year Financial Highlights:

  • GAAP earnings per share (EPS) from continuing operations of $2.78, up $1.62 year-over-year (YOY); adjusted EPS from continuing operations of $3.55, up $0.67 YOY.
  • Adjusted operating margin of 13.1 percent, up 180 basis points YOY.
  • $1.24 billion of operating cash flow from continuing operations, up $162 million YOY; $1.18 billion of free cash flow, up $187 million YOY.
  • $9.07 billion of revenue, a decrease of 6.2 percent in actual currency YOY or 4.7 percent in constant currency YOY.
  • Achieved gross savings of $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.
  • Returned 72 percent of free cash flow to shareholders.

Click here to view full financials

SOURCE Industry Analysts Inc.

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