Xerox Sees Weak Sales In CC, Higher Adj. Margin In FY24 - Update

(RTTNews) - While reporting a loss in its fourth quarter with weak sales, workplace technology company Xerox Holdings Corp. (XRX) on Thursday said it expects lower sales in fiscal 2024 in constant currency. However, adjusted operating margin would be higher than last year.

The company said it sees another year of meaningful growth in adjusted operating income, and reiterated its three-year target of $300 million of incremental adjusted operating income above 2023 levels and a return to double-digit adjusted operating income margin by 2026.

For fiscal 2024, the company projects revenue to decline of 3 percent to 5 percent in constant currency from fiscal 2023 revenues of $6.89 billion.

Adjusted operating margin would be at least 7.5 percent, up from last year's 5.6 percent.

The company expects stable Print demand, growth in Digital and IT Services and neutral macroeconomic conditions.

Free cash flow would be at least $600 million.

Steve Bandrowczak, chief executive officer at Xerox, said, "As we enter 2024, we are focused on stabilizing and strengthening our core Print business, driving enterprise-wide efficiency and productivity gains through our new Global Business Services organization, and further capturing opportunities in Digital and IT Services."

In its fourth quarter, net loss was $58 million or $0.50 per share, compared to profit of $121 million or $0.74 per share last year.

Adjusted net income was $56 million or $0.43 per share, compared to $146 million or $0.89 per share last year.

Analysts on average expected the company to report earnings of $0.53 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Revenue of $1.77 billion was down 9.1 percent from $1.94 billion in the same period last year. Revenue was down 10.6 percent in constant currency.

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