Business
Xerox Exceeds Q4 EPS Guidance, Delivers Strong Cash Flow and Operating Margin
Announces 2020 guidance consistent with three-year plan, including further EPS expansion and revenue trend improvement 2019 Full-Year Financial Highlights:
About this update from Xerox Holdings Corporation
[{"type":"text","content":"\nAnnounces 2020 guidance consistent with three-year plan, including further EPS expansion and revenue trend improvement \n\n\n2019 Full-Year Financial Highlights:\n\n\n\nGAAP 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.\n\n\nAdjusted operating margin of 13.1 percent, up 180 basis points YOY.\n\n\n$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.\n\n\n$9.07 billion of revenue, a decrease of 6.2 percent in actual currency YOY or 4.7 percent in constant currency YOY.\n\n\nAchieved gross savings of $640 million under Project Own It, Xerox’s enterprise-wide initiative to simplify operations, drive continuous improvement and free up capital to reinvest in the business.\n\n\nReturned 72 percent of free cash flow to shareholders.\n\n\n\n \n\n NORWALK, Conn.--(BUSINESS WIRE)--\nXerox Holdings Corporation (NYSE: XRX) announced its fourth-quarter and full-year 2019 financial results and 2020 guidance.\n\n\n“We are delivering on our three-year plan. We grew earnings per share, increased cash flow and expanded adjusted operating margin for the full year, and we improved our revenue trajectory in the second half of the year as our investments in the business gained traction,” said Xerox Vice Chairman and CEO John Visentin. “We accomplished this while returning more than 70 percent of free cash flow to shareholders, paying down approximately $950 million in debt and increasing investments in our innovation areas. We are well-positioned to carry this momentum into 2020 and lead the way for long-overdue industry consolidation.”\n\n\n\n\nFourth-Quarter Key Financial Results - Continuing Operations:\n\n\n\n\n\n(in millions, except per share data)\n\n\n \n\nQ4 2019\n\n\n \n\nQ4 2018\n\n\n \n\nB/(W)\nYOY\n\n\n \n\n% Change\nYOY\n\n\n\n\n\nRevenue\n\n\n \n\n$2,444\n\n\n \n\n$2,498\n\n\n \n\n$(54)\n\n\n \n\n(2.2)% AC\n(1.6)% CC1\n\n\n\n\n\nGross Margin\n\n\n \n\n41.6%\n\n\n \n\n40.0%\n\n\n \n\n160 bps\n\n\n \n\n \n\n\n\n\n\nRD&E %\n\n\n \n\n3.8%\n\n\n \n\n3.8%\n\n\n \n\n—\n\n\n \n\n \n\n\n\n\n\nSAG %\n\n\n \n\n20.9%\n\n\n \n\n22.1%\n\n\n \n\n120 bps\n\n\n \n\n \n\n\n\n\n\nPre-Tax Income\n\n\n \n\n$336\n\n\n \n\n$124\n\n\n \n\n$212\n\n\n \n\n171.0%\n\n\...