Xerox reports revenue down 7.5 percent in third quarter
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Xerox Holdings Corp. announced third-quarter revenue of $1.53 billion, down 7.5 percent, or 7.3 percent in constant currency. GAAP net (loss) of $(1.2) billion, or $(9.71) per share, a decrease of $1.3 billion or $9.99 per share, year-over-year, respectively. Xerox also reported adjusted net income of $34 million, down $43 million, year-over-year, respectively.
“Q3 results demonstrate no single quarter or performance metric in isolation defines our Reinvention,” said Steve Bandrowczak, chief executive officer at Xerox. “Operational improvements and enterprise-wide efficiencies are driving services signings momentum, improved decision-making and a sustainably lower cost base. These gains give us confidence Reinvention will enable long-term profitable growth as we continue this multi-year journey.
“While equipment revenue fell short of expectations, we continue to see steady progress from Reinvention initiatives taken to date. Adjusted operating income and margin grew year-over-year, and the pending acquisition of ITsavvy will improve Xerox’s value proposition with clients, as well as the mix of revenue from growing businesses.
Third-Quarter Key Financial Results
|
(in millions, except per share data) |
Q3 2024 |
|
Q3 2023 |
|
B/(W) YOY |
|
% Change B/(W) YOY |
|
Revenue |
$1,528 |
|
$1,652 |
|
$(124) |
|
(7.5)% AC (7.3)% CC1 |
|
Gross Margin |
32.4% |
|
32.4% |
|
— |
|
|
|
RD&E % |
2.9% |
|
3.1% |
|
20 bps |
|
|
|
SAG % |
24.2% |
|
25.2% |
|
100 bps |
|
|
|
Pre-Tax (Loss) Income2 |
$(1,087) |
|
$64 |
|
$(1,151) |
|
NM |
|
Pre-Tax (Loss) Income Margin2 |
(71.1)% |
|
3.9% |
|
NM |
|
|
|
Operating Income – Adjusted1 |
$80 |
|
$68 |
|
$12 |
|
17.6% |
|
Operating Income Margin – Adjusted1 |
5.2% |
|
4.1% |
|
110 bps |
|
|
|
GAAP Diluted (Loss) Earnings per Share2 |
$(9.71) |
|
$0.28 |
|
$(9.99) |
|
NM |
|
Diluted Earnings Per Share – Adjusted1 |
$0.25 |
|
$0.46 |
|
$(0.21) |
|
(45.7)% |
Third-Quarter Segment Results
|
(in millions) |
Q3 2024 |
|
Q3 2023 |
|
B/(W) |
|
% Change |
|
Revenue |
|
|
|
|
|
|
|
|
Print and Other |
$1,457 |
|
$1,575 |
|
$(118) |
|
(7.5)% |
|
XFS |
88 |
|
98 |
|
(10) |
|
(10.2)% |
|
Intersegment Elimination3 |
(17) |
|
(21) |
|
4 |
|
(19.0)% |
|
Total Revenue |
$1,528 |
|
$1,652 |
|
$(124) |
|
(7.5)% |
|
Profit |
|
|
|
|
|
|
|
|
Print and Other |
$67 |
|
$64 |
|
$3 |
|
4.7% |
|
XFS |
13 |
|
4 |
|
9 |
|
225.0% |
|
Total Profit |
$80 |
|
$68 |
|
$12 |
|
17.6% |
