Xerox Holdings Corp (NASDAQ: XRX) shares are trading lower Tuesday after the company reported worse-than-expected financial results and cut its full-year outlook.
Xerox said third-quarter revenue was down 0.4% year-over-year to $1.75 billion, which missed average analyst estimates of $1.77 billion, according to Benzinga Pro. The company reported quarterly earnings of 19 cents per share, which missed average estimates of 40 cents per share.
"Top-line strength and cost discipline resulted in sequential improvement to our adjusted operating margin this quarter, but profitability remains challenged by persistently high inflation and continued supply chain constraints," said Steve Bandrowczak, CEO of Xerox.
"In the near-term, we are focused on improving operating margins and free cash flow amid a challenging macroeconomic environment."
Xerox now expects full-year revenue to be between $7 billion and $7.1 billion. The company expects free cash flow of at least $125 million, down from previous expectations of at least $400 million.
Xerox said its updated guidance primarily reflects higher-than-expected currency effects associated with a weaker Euro and British Pound.
Xerox is an original equipment manufacturing and software company, digitally enabling business through innovative IT services.
XRX Price Action: Xerox is making new 52-week lows on Tuesday.
The stock was down 14.6% at $13.61 at time of publication.
Photo: courtesy of Xerox.
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