Xerox Corp. (NYSE: XRX) reported third-quarter 2016 results before markets opened Friday. The business technology firm posted quarterly adjusted diluted earnings per share (EPS) of $0.27 on revenues of $4.21 billion. In the same period a year ago, the company reported EPS of $0.24 on revenues of $4.33 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.27 and $4.31 billion in revenues.
The company said its planned separation remains on track to be completed by the end of 2016. The newly formed company, Conduent Inc., comprises Xerox’s business process outsourcing business and will trade on the New York Stock Exchange. The transaction is expected to be tax-free for Xerox shareholders.
For the fourth quarter, Xerox expects adjusted EPS in the range of $0.32 to $0.35. Adjusted EPS for the full fiscal year is now forecast at $1.11 to $1.24. Consensus estimates called for fourth-quarter EPS of $0.34 and full-year earnings of $1.13 per share. Xerox also expects full-year cash flow from operations of $950 million to $1.2 billion and free cash flow of $600 million to $850 million.
Ursula Burns, who is among the executives on our list of CEOs who have to go, had this to say in the earnings report:
In an important period for Xerox when our separation-related activities ramped up significantly, we delivered solid financial results despite challenging market conditions. This reflects our commitment to executing on all aspects of our ambitious agenda, including our strategic transformation and achieving our 2016 financial objectives
Xerox shares closed at $9.57 on Thursday, down about 0.8% for the day, and they traded down about 1.5% in Friday’s premarket session. The stock’s 52-week range is $8.48 to $11.39. The consensus 12-month price target was $11.32 before this latest earnings report.