Xerox is reporting third quarter earnings that met at least some of Wall Street’s expectations.
Xerox saw earnings of $181 million, or 27 cents a share (in adjusted earnings) for the quarter which met Wall Street estimates. But revenues of $4.2 billion were a little less than analysts were expecting. Analysts were expecting revenues of about $4.3 billion
Still, overall, Xerox CEO Ursula Burns felt it was a decent quarter for the company.
“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,” Burns said in a statement.
At Brighton Securities, Chairman George Conboy says in general the quarter was a stable one for Xerox. But he’s particularly concerned about the drop in sales for the document technology business, which is what makes up most of Xerox’s operations in Webster.
“When I saw sales decline by yet another seven percent, adjusted for currency fluctuations, seeing that quarter over quarter and year over year decline in the document business really concerns me.”
The company now employs just over 6,000 people in the Rochester area, about what Xerox employed a year ago. A spokesperson says it did see about 160 fewer jobs in the 3rd quarter compared to the previous quarter, but noted that figure does fluctuate up and down over the year due to a variety of factors.
Xerox says it is on track to split into two companies, one centered around business services, and the other around equipment, by the end of the year.
Xerox has also announced in a filing that it has reached an agreement with shareholder Darwin Deason. He had sued to try and block the company from spitting into two separate businesses, over a concern that would leave him with a less attractive investment. The agreement will give Deason preferred shares in both of the Xerox companies after they are split.
