By Sonam Rai
(Reuters) – Xerox Corp (NYSE:XRX) fell short on revenue but beat estimates for profit on the back of cost-cutting in its first full quarter under new management backed by activist investors Carl Icahn and Darwin Deason.
The U.S. photocopier, which is facing a long-running decline in its core business, reported net profit that roughly halved and said revenue fell 5.8 percent year-on-year to $2.35 billion in the third quarter ended Sept. 30, below an average analyst estimate of $2.42 billion.
Operating cash flow for the quarter, however, rose and the company increased its 2018 share repurchase target to $700 million from $500 million and forecast for full-year free cash flow to between $900 million and $1 billion.
“Clearly, our priority to drive revenue requires the most effort,” Chief Executive Officer John Visentin, who worked as a consultant to Icahn in the proxy fight, said on a call with analysts.
“We are putting in place actions to sustainably improve our revenue performance. These start with building a more simplified, agile organizational structures and include further expanding our channel presence…”, he said.