Xerox Q4 Earnings Surpass Street View As Demand & Supply Chain Conditions Improve

  • Xerox Holdings Corp XRX reported fourth-quarter FY22 sales growth of 9.2% year-on-year to $1.94 billion, beating the consensus of $1.89 billion.
  • Equipment sales increased 44.3%, while Post sale revenue declined 0.4%.
  • Sales in the Americas rose 17.4% Y/Y, and EMEA climbed 8.6% in constant currency.
  • Adjusted EPS of $0.89 beat the analyst consensus of $0.49.
  • Gross margin expanded 190 basis points Y/Y to 34.8%.
  • The company reported an adjusted operating income of $178 million, a 107% increase Y/Y, and the margin expanded 440 basis points to 9.2%.
  • Xerox held $1.04 billion in cash and equivalents as of Dec. 31, 2022. Operating cash flow for the quarter totaled $186 million, with a free cash flow of $168 million.
  • "Resilient demand and improvements in supply chain conditions drove solid Q4 growth in revenue and profits," said CEO Steve Bandrowczak.
  • Outlook: Xerox sees FY23 revenue growth of flat to down low-single-digits in constant currency.
  • It sees a free cash flow of at least $500 million and an adjusted operating margin of at least 4.7%.
  • Also ReadCredit Suisse Expects Xerox To Benefit From Backlog In Q4; Predicts Minimal Opportunity In 2023
  • Price Action: XRX shares are trading higher by 1.03% at $17.60 in premarket on the last check Thursday.
  • Photo Via Company
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