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Dec 31, 2019
Xerox Q4 2019 Earnings Report
Xerox exceeded Q4 EPS guidance and delivered strong cash flow and operating margin.
Key Takeaways
Xerox Holdings Corporation announced its fourth-quarter and full-year 2019 financial results and 2020 guidance. The company grew earnings per share, increased cash flow and expanded adjusted operating margin for the full year, and improved its revenue trajectory in the second half of the year.
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.
Xerox
Xerox
Xerox Revenue by Segment
Revenue by Segment
Equipment Sales Revenue
CapyFin.comPost Sale Revenue
CapyFin.com Forward Guidance
The company expects continued progress on its strategic initiatives, as projected in its 2020 financial guidance:
Positive Outlook
- Revenue decline of approximately 4 percent at constant currency, excluding revenue from the $77 million OEM license in 2019.2
- Adjusted operating margin of approximately 13 percent.
- GAAP EPS from continuing operations in the range of $2.80 to $2.90.
- Adjusted EPS in the range of $3.60 to $3.70.
- Operating cash flow from continuing operations of approximately $1.3 billion and free cash flow of approximately $1.2 billion.
Challenges Ahead
- Revenue decline of approximately 4 percent at constant currency, excluding revenue from the $77 million OEM license in 2019.2
- Adjusted operating margin of approximately 13 percent.
- GAAP EPS from continuing operations in the range of $2.80 to $2.90.
- Adjusted EPS in the range of $3.60 to $3.70.
- Company expects at least $300 million of share repurchases and return of at least 50 percent of annual free cash flow to shareholders in 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income