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- Xerox Holdings Corp (NASDAQ: XRX) reported a first-quarter FY22 sales decline of 2.5% year-on-year to $1.67 billion, beating the consensus of $1.64 billion.
- Equipment sales declined 17.6%, while Post sale revenue improved 1.9%.
- Sales in the Americas declined 0.5% Y/Y, and EMEA fell 5.6%.
- Gross margin contracted 390 basis points Y/Y to 31.8%.
- The company reported an adjusted operating loss of $(3) million in the quarter versus a profit of $89 million last year.
- Xerox held $1.7 billion in cash and equivalents as of March 31, 2022. Operating cash flow amounted to $66 million, and free cash flow totaled $50 million in the quarter.
- Adjusted EPS loss of $(0.12) missed the analyst consensus of $0.13.
- "Broad-based inflationary pressure and increased logistics costs from supply chain disruption resulted in an operating loss, but we expect to offset most of these cost increases over time with price actions and additional Project Own It savings," said Vice Chairman and CEO John Visentin.
- Outlook: Xerox is maintaining its revenue and cash flow guidance for 2022. It sees FY22 revenue of at least $7.1 billion in actual currency and a free cash flow of at least $400 million.
- Price Action: XRX shares are trading lower by 19.1% at $16.05 in premarket on the last check Thursday.
- Photo Via Wikimedia Commons
Read at Benzinga