Xerox Corp (NYSE:XRX) announced its third-quarter 2016 earnings on Friday. Revenue kept declining for the seventh straight quarter, but the company reported profits due to the falling expenses.
Xerox Corporation, founded in 1907 and headquartered in Norwalk, Connecticut, is a global company focus on selling business services and document technology products. At the beginning of this year, the company announced to separate into two independent public traded companies, Xerox Corporation and Conduent Incorporated. Xerox Corporation will be in charge of Document Technology and Document Outsourcing businesses, and Conduent Incorporated will be a business services company. According the press release of the company, the separation will be going on and will complete by the end of this year.
In the report, the company announced that total revenue in the September quarter was $4.21 billion, decreasing 3% from the $4.33 billion the same period last year. Total cost dropped 10% year-over-year, while costs of outsourcing, maintenance and rentals decreased 15%. The company also costs $39 million for separation, which was a new cost this year.
Due to the falling expenses, the company reported net income of $181 million, increased from net loss of $34 million last year. Earnings per share was $0.17 per share in the third quarter, compared with a loss of $0.04 per share the same period last year. Excluding certain items, the company announced profits of $0.27 per share, within the estimate range of $0.26 and $0.28 per share.
Shares of Xerox dropped 1.5% to $9.43 per share in premarket trading today.
On Thursday, Xerox reached an agreement with shareholder Darwin Deason, promising to give Darwin 180,000 preferred shares in Xerox and 120,000 preferred shares in Conduent after its split. The agreement settled the lawsuit of Darwin earlier this month and cleared the way of finishing the separation.
In the report, Xerox also adjusted its guidance of full year 2016, with narrowing is full-year earnings per share of $0.45 to $0.48 per share, and adjusted earnings per shares of $1.11 to $1.14 per share.