Xerox reports level second-quarter earnings
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Xerox Holdings Corp. reports 2023 second-quarter revenue was essentially level with the same period last year, but GAAP (loss) earnings per share (EPS) of $(0.41), down $0.36 year-over-year.
“Over the last 12 months, Xerox has taken significant steps to strengthen its operating and financial discipline, leading to another quarter of profitable growth amid a dynamic macroeconomic backdrop,” said Steve Bandrowczak, chief executive officer at Xerox. “I’m proud of the part all Xerox employees and partners have played in our continued success. An improved operating system leaves us well positioned to pursue growth opportunities as we focus on meeting clients’ evolving needs in today’s hybrid workplace.”
Second-Quarter Key Financial Results
|
(in millions, except per share data) |
Q2 2023 |
Q2 2022 |
B/(W) |
% Change |
|
Revenue |
$1,754 |
$1,747 |
$7 |
0.4% AC |
|
Gross Margin |
34.0% |
31.9% |
210 bps |
|
|
RD&E % |
3.2% |
4.8% |
160 bps |
|
|
SAG % |
24.7% |
26.3% |
160 bps |
|
|
Pre-Tax (Loss) |
$(89) |
$(5) |
$(84) |
NM |
|
Pre-Tax (Loss) Margin |
(5.1)% |
(0.3)% |
(480) bps |
|
|
Operating Income – Adjusted (1) |
$107 |
$35 |
$72 |
205.7% |
|
Operating Income Margin – Adjusted (1) |
6.1% |
2.0% |
410 bps |
|
|
GAAP Diluted (Loss) per Share |
$(0.41) |
$(0.05) |
$(0.36) |
NM |
|
Diluted Earnings Per Share – Adjusted (1) |
$0.44 |
$0.13 |
$0.31 |
238.5% |
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____________ |
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| (1) |
Refer to the “Non-GAAP Financial Measures” section of this release for a discussion of these non-GAAP measures and their reconciliation to the reported GAAP measures. |
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During the second quarter of 2023, the company recast FITTLE’s segment revenues and profit measures to reflect the recent strategic shift in the company’s approach to funding FITTLE’s growth through receivable funding agreements that involve the sale of lease receivables. Refer to 2023 Segment Reporting Change for FITTLE’s recast Segment revenues and profits for FY 2022 and Q1 2023.
Second-Quarter Segment Results
|
(in millions) |
Q2 2023 |
|
Q2 2022 |
|
B/(W) |
|
% Change |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
Print and Other |
$1,674 |
|
$1,673 |
|
$1 |
|
0.1% |
|
|
Financing (FITTLE) |
101 |
|
96 |
|
5 |
|
5.2% |
|
|
Intersegment Elimination (1) |
(21) |
|
(22) |
|
1 |
|
(4.5)% |
|
|
Total Revenue |
$1,754 |
|
$1,747 |
|
$7 |
|
0.4% |
|
|
Profit |
|
|
|
|
|
|
|
|
|
Print and Other |
$107 |
|
$29 |
|
$78 |
|
269.0% |
|
|
Financing (FITTLE) |
– |
|
6 |
|
(6) |
|
(100.0)% |
|
|
Total Profit |
$107 |
|
$35 |
|
$72 |
|
205.7% |
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