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 Read: Credit 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

Earnings Calendar