Xerox reports fourth-quarter revenue down 8.6 percent
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Xerox Corp. reported fourth-quarter revenue of $1.61 billion, down 8.6 percent, or 8.0 percent in constant currency, but the GAAP net (loss) of $(21) million, or $(0.20) per share, was an improvement of $37 million or $0.30 per share, year-over-year, respectively. Xerox had an adjusted net income of $49 million, or $0.36 per share, down $7 million or $0.07 per share, year-over-year, respectively.
For the full year, Xerox reported revenue of $6.22 billion, down 9.7 percent, or 9.5 percent in constant currency and adjusted net income of $135 million, or $0.97 per share, down $152 million or $0.85 per share, year-over-year, respectively.
“2024 was a critical year as we implemented a new operating model and structural process improvements to position Xerox for long-term, sustainable growth,” said Steve Bandrowczak, chief executive officer at Xerox. “We continue to see steady progress in our Reinvention, reflecting the resilience of our team and initiatives taken to-date. In 2025, we expect to build on changes made in 2024 to focus on executing our Reinvention strategy, realizing the benefits of the ITsavvy and pending Lexmark acquisitions, and strengthening our balance sheet.”
Fourth-Quarter Key Financial Results
|
(in millions, except per share data) |
Q4 2024 |
|
Q4 2023 |
|
B/(W) |
|
% Change |
|
|
Revenue |
$1,613 |
|
$1,765 |
|
$(152) |
|
(8.6)% AC (8.0)% CC1 |
|
|
Gross Profit |
$502 |
|
$592 |
|
$(90) |
|
(15.2)% |
|
|
Gross Margin |
31.1% |
|
33.5% |
|
(240) bps |
|
|
|
|
RD&E % |
2.9% |
|
3.2% |
|
30 bps |
|
|
|
|
SAG % |
23.4% |
|
24.9% |
|
150 bps |
|
|
|
|
Pre-Tax (Loss)2 |
$(4) |
|
$(88) |
|
$84 |
|
NM |
|
|
Pre-Tax (Loss) Margin2 |
(0.2)% |
|
(5.0)% |
|
480 bps |
|
|
|
|
Gross Profit – Adjusted1 |
$509 |
|
$592 |
|
$(83) |
|
(14.0)% |
|
|
Gross Margin – Adjusted1 |
31.6% |
|
33.5% |
|
(190) bps |
|
|
|
|
Operating Income – Adjusted1 |
$104 |
|
$96 |
|
$8 |
|
8.3% |
|
|
Operating Income Margin – Adjusted1 |
6.4% |
|
5.4% |
|
100 bps |
|
|
|
|
GAAP Diluted (Loss) per Share2 |
$(0.20) |
|
$(0.50) |
|
$0.30 |
|
NM |
|
|
Diluted Earnings Per Share – Adjusted1 |
$0.36 |
|
$0.43 |
|
$(0.07) |
|
(16.3)% |
Full-Year Key Financial Results
|
(in millions, except per share data) |
FY 2024 |
|
FY 2023 |
|
B/(W) |
|
% Change |
|
|
Revenue |
$6,221 |
|
$6,886 |
|
$(665) |
|
(9.7)% AC (9.5)% CC1 |
|
|
Gross Profit |
$1,960 |
|
$2,314 |
|
$(354) |
|
(15.3)% |
|
|
Gross Margin |
31.5% |
|
33.6% |
|
(210) bps |
|
|
|
|
RD&E % |
3.1% |
|
3.3% |
|
20 bps |
|
|
|
|
SAG % |
24.7% |
|
24.6% |
|
(10) bps |
|
|
|
|
Pre-Tax (Loss)2 |
$(1,216) |
|
$(28) |
|
$(1,188) |
|
NM |
|
|
Pre-Tax (Loss) Margin2 |
(19.5)% |
|
(0.4)% |
|
NM |
|
|
|
|
Gross Profit – Adjusted1 |
$2,011 |
|
$2,314 |
|
$(303) |
|
(13.1)% |
|
|
Gross Margin – Adjusted1 |
32.3% |
|
33.6% |
|
(130) bps |
|
|
|
|
Operating Income – Adjusted1 |
$302 |
|
$389 |
|
$(87) |
|
(22.4)% |
|
|
Operating Income Margin – Adjusted1 |
4.9% |
|
5.6% |
|
(70) bps |
|
|
|
|
GAAP Diluted (Loss) per Share2 |
$(10.75) |
|
$(0.09) |
|
$(10.66) |
|
NM |
|
|
Diluted Earnings Per Share – Adjusted1 |
$0.97 |
|
$1.82 |
|
$(0.85) |
|
(46.7)% |
Fourth-Quarter Segment Results
|
(in millions) |
Q4 2024 |
|
Q4 2023 |
|
B/(W) |
|
% Change |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
Print and Other |
$1,540 |
|
$1,686 |
|
$(146) |
|
(8.7)% |
|
|
XFS |
89 |
|
100 |
|
(11) |
|
(11.0)% |
|
|
Intersegment Elimination1 |
(16) |
|
(21) |
|
5 |
|
(23.8)% |
|
|
Total Revenue |
$1,613 |
|
$1,765 |
|
$(152) |
|
(8.6)% |
|
|
Profit |
|
|
|
|
|
|
|
|
|
Print and Other |
$87 |
|
$89 |
|
$(2) |
|
(2.2)% |
|
|
XFS |
17 |
|
7 |
|
10 |
|
142.9% |
|
|
Total Profit |
$104 |
|
$96 |
|
$8 |
|
8.3% |
Full-Year Segment Results
|
(in millions) |
FY 2024 |
|
FY 2023 |
|
B/(W) |
|
% Change |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
Print and Other |
$5,935 |
|
$6,571 |
|
$(636) |
|
(9.7)% |
|
|
XFS |
357 |
|
401 |
|
(44) |
|
(11.0)% |
|
|
Intersegment Elimination1 |
(71) |
|
(86) |
|
15 |
|
(17.4)% |
|
|
Total Revenue |
$6,221 |
|
$6,886 |
|
$(665) |
|
(9.7)% |
|
|
Profit |
|
|
|
|
|
|
|
|
|
Print and Other |
$268 |
|
$360 |
|
$(92) |
|
(25.6)% |
|
|
XFS |
34 |
|
29 |
|
5 |
|
17.2% |
|
|
Total Profit |
$302 |
|
$389 |
|
$(87) |
|
(22.4)% |