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Jun 30, 2022
Xerox Q2 2022 Earnings Report
Xerox's Q2 2022 results were released, showing revenue growth in constant currency but a decrease in GAAP EPS and adjusted operating margin due to inflation and supply chain challenges.
Key Takeaways
Xerox Holdings Corporation announced its second-quarter 2022 results, with revenue of $1.75 billion, a decrease of 2.6 percent year-over-year, but an increase of 1.1 percent in constant currency. GAAP loss per share was $(0.05), and adjusted EPS was $0.13. The company is maintaining its revenue and free cash flow guidance for 2022.
Revenue grew in constant currency, driven by improving demand and pricing growth.
Inflation and supply chain issues affected margins but are expected to improve in the second half of the year.
Strong demand and margin improvement visibility support reiteration of full-year guidance.
The company is targeting gross cost savings of $450 million in 2022, mostly in the second half of the year.
Xerox
Xerox
Forward Guidance
Xerox is maintaining its revenue and free cash flow guidance for 2022, assuming supply chain disruption will begin to subside and return-to-office trends will continue to improve throughout the second half of the year.
Positive Outlook
- Revenue of at least $7.1 billion in actual currency.
- Free cash flow of at least $400 million.
- Return at least 50% of free cash flow to shareholders.