Xerox profits top expectations; sales fall in latest quarterly report
Xerox is reporting growth in earnings but a decline in sales, in its latest quarterly report.
In the 2nd quarter, the company saw profits of $181 million, compared to $112 million a year ago, but sales were down 8.8%. Without currency fluctuations in the mix, the revenue decline was 7.2%. Adjusted earnings-per-share of $.99 topped Wall Street expectations.
At Brighton Securities, George Conboy says overall, this was a pretty good quarterly report for the company.
“It is one of the better reports I’ve seen from Xerox in several quarters with a lot of metrics we use to measure profitability increasing across the board. The one area of serious concern that remains with Xerox, and it’s been this way for more than a dozen years, is sales declined again,” Conboy said.
Xerox officials also say that the company’s decline in revenues is impacted by organizational changes that it is making to transform the company for long-term sustainability.
The company expects revenues to fall 6% for the year overall, compared to its previous guidance of a 5% decline.
Xerox Vice Chairman and CEO John Visentin says the 2nd quarter results have enabled the company to increase planned investments for the second half of the year.
Xerox reported that as part of restructuring costs, it reduced worldwide employment by 150 employees during the second half of 2018.