GEC NEWS WIREXerox revealed its second-quarter financial results and reiterated its full-year adjusted earnings guidance. The company reported significant progress on its plan to separate into two independent, Fortune 500-scale, publicly traded companies by year-end and on its strategic transformation program.
“We delivered strong second-quarter results reflecting significant progress across our 2016 priorities: delivering on our financial commitments, executing our separation and driving our strategic transformation,” said Ursula Burns, Xerox Chairman and CEO. “Our Services segment delivered substantial margin expansion and continued revenue growth in Document Outsourcing. Document Technology revenue declines moderated and margin improved driven by cost and productivity initiatives.”
The key highlights include- GAAP EPS of 15 cents and adjusted EPS of 30 cents; Adjusted EPS up 30 percent and above guidance range of 24 to 26 cents. Operating margin of 9.3 percent, up 0.8 percentage points year-over-year. Total revenue of $4.4 billion, down 4 percent year-over-year. Services margin of 9.6 percent, up 2.4 percentage points year-over-year. Positive Document Technology revenue and margin trends. Re-affirms full-year 2016 guidance. Significant progress during quarter on separation and strategic transformation
2016 Guidance for third-quarter 2016, Xerox expects GAAP EPS of 14 to 16 cents per share and adjusted EPS of 26 to 28 cents per share. Xerox continues to anticipate full-year 2016 cash flow from operations of $950 million to $1.2 billion and free cash flow of $600 to $850 million.
