- Xerox Holdings Corp’s XRX revenue declined 8.1% year on year to $1.71 billion in the first quarter of FY21, exceeding analyst estimate of $1.59 billion. EPS rose 4.8% to $0.22, missing analyst estimate of $0.3.
- Revenue from equipment sales rose 17.2% to $381 million, and Post-sale revenue declined 13.4% to $1.33 billion, constituting 78% of revenue.
- Mid-range equipment generated 63% of the equipment sales revenue, while Entry and high-end equipment generated 18% each.
- Americas, EMEA, and others geographical segments constituted 63%, 34%, and 3% of the revenue.
- The gross margin declined 260 basis points to 35.7%.
- Operating income rose 2.3% to $89 million. The margin expanded by 50 basis points to 5.2%.
- The company generated $117 million in operating cash flow, lower by $56 million year-over-year. It held $2.4 billion in cash and equivalents as of Mar. 31, 2021.
- Xerox expects revenue growth of 2.5% to $7.2 billion for FY21. The company reaffirmed its operating cash flow and free cash flow projections of $600 million and $500 million, respectively.
- Price action: XRX shares traded lower by 2.65% at $24.65 in the premarket session on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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