Xerox Reports Revenue Decline in Q1
According to Xerox, revenue decreased 2.5 percent year-over-year (0.7% year-over-year in constant currency) to $1.67 billion in the first quarter of 2022 (Q1, 2022).
Some other highlights include:
- GAAP (loss) earnings per share (EPS) was $(0.38), down $0.56 year-over-year, and the adjusted (loss) per share was $ (0.12), down $0.34 year-over-year.
- Pre-tax margin was (5.3) percent, down 840 basis points, and the adjusted operating margin was (0.2) percent, down 540 basis points year-over-year.
- Operating cash flow was $66 million, down $51 million year-over-year.
- Free cash flow was $50 million, down $50 million year-over-year.
By segment, Print and Other revenue turned out to be $1.55 billion in Q1, down 2.0 percent year-over-year.
“Revenue was in line with expectations this quarter despite an increasingly volatile operating environment,” said Xerox Vice Chairman and CEO John Visentin. “Underlying demand for our products and services remains strong, as indicated by our growing backlog and growth in postsale revenue. 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. We remain focused on executing the strategic roadmap presented at our Investor Day in February and are committed to monetizing our investments in new businesses in ways that maximize shareholder value.”
“Despite all the uncertainties, we are maintaining our revenue and cash flow guidance, subject to improvements
in supply chain constraints and return to office trends in the second half of the year. We are implementing
counteractive measures to help stabilize our profitability and maintain our free cash flow target in response to
geopolitical uncertainty and inflationary pressures,” said the spokesman of Xerox.
For 2022 full-year guidance, Xerox claims revenue will be at $7.1 billion in actual currency. Free cash flow will be at least $ 400 million. Shareholder returns will be at least 50% of annual free cash flow.
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