Xerox beats by $0.09, beats on revs; guides FY18 EPS above consensus, revs above consensus
- Reports Q4 (Dec) earnings of $1.04 per share, $0.09 better than the Capital IQ Consensus of $0.95; revenues rose 0.5% year/year to $2.75 bln vs the $2.63 bln Capital IQ Consensus.
- Co issues upside guidancefor FY18, sees EPS of $3.50-3.70 vs. $3.50 Capital IQ Consensus Estimate; sees FY18 revs of $9.9-10.1 bln vs. $9.79 bln Capital IQ Consensus Estimate.
- Joint venture to eliminate 10,000 jobs globally in revamp
- U.S. company’s ubiquitious office copiers became a verb
- Activist investor Carl Icahn had pushed Xerox to explore “strategic options,” including shaking up its joint venture with Fujifilm.
Xerox and FUJIFILM (FUJIY) enter into a definitive agreement to combine Xerox and their longstanding Fuji Xerox joint venture
- FUJIFILM Holdings and Xerox Corporation announced that they have entered into a definitive agreement to combine Xerox and their longstanding Fuji Xerox joint venture. The combined company will be a global leader in innovative print technologies and intelligent work solutions with annual revenues of $18 billion and leadership positions in key geographic regions.
- This proposed combination provides Xerox shareholders with significant cash at closing, as well as a substantial interest in the significantly enhanced combined company.
- Under the terms of the agreement, Xerox shareholders will receive a $2.5 billion special cash dividend, or approximately $9.80 per share, funded from the combined company's balance sheet, and own 49.9% of the combined company at closing.
- The cash dividend represents more than 30% of Xerox's unaffected share price of $30.35 based on closing share price as of January 10, 2018.
- Fujifilm will own 50.1% of the combined company and provide important operational support and transformational leadership.
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