Xerox Delivers Growth in Profitability and Cash Flow in Q3
Xerox claims it delivered another quarter of growth in adjusted operating income, adjusted operation income margin and free cash flow despite a year-over-year decline in revenue.
According to Xerox, the growth is thanks to its operational simplification and strategic business repositioning.
Some highlights of Xerox’s consolidated results in the third quarter of the fiscal year 2023 (Q3, 2023) include:
- Revenue of $1.65 billion, down 5.7%, or 7.4% in constant currency.
- GAAP net income of $49 million, or $0.28 per share, up $432 million or $2.76 per share, year-over-year, respectively.
- Adjusted net income of $77 million, or $0.46 per share, up $44 million or $0.27 per share, year-over-year, respectively.
- Adjusted operating margin of 4.1%, up 40 basis points year-over-year.
- Operating cash flow of $124 million, up $132 million year-over-year.
- Free cash flow of $112 million, up $130 million year-over-year.
- Announces Reinvention, expected to deliver improvement in adjusted operating income of at least $300 million by 2026.
By segment, Print & Other revenue turned up to $1.58 billion, up 6% year-over-year. Segment profit for Print & Other was $64 million, up 1.6% year-over-year.
For the whole fiscal year, Xerox expected a flat revenue growth and a low-single-digit decrease in constant currency. Xerox also expected the adjusted operating margin would be 5.5% to 6%, with at least $600 million free cash flow.
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