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Jun 30, 2023
Xerox Q2 2023 Earnings Report
Xerox's second-quarter results were released, and the 2023 guidance was raised due to resilient demand and balanced execution driving growth in revenue and profits.
Key Takeaways
Xerox Holdings Corporation reported second-quarter 2023 results with revenue of $1.75 billion, up 0.4 percent, and adjusted EPS of $0.44, up $0.31 year-over-year. The company raised its guidance for adjusted operating margin to a range of 5.5% to 6.0% and free cash flow to at least $600 million.
Revenue increased by 0.4 percent to $1.75 billion.
Adjusted EPS increased to $0.44, up by $0.31 year-over-year.
Adjusted operating margin improved to 6.1 percent, up 410 basis points year-over-year.
Free cash flow was $88 million, up $186 million year-over-year.
Forward Guidance
Xerox is increasing guidance for adjusted operating margin to a range of 5.5% to 6.0%, and free cash flow to at least $600 million.
Positive Outlook
- Adjusted Operating Margin: 5.5% to 6.0%
- Free cash flow: at least $600 million
- Revenue: flat to down low-single-digits in constant currency
- Stronger-than-expected realization of operating efficiencies
- Revenue mix
Challenges Ahead
- Global macroeconomic conditions, including inflation, slower growth or recession
- Delays or disruptions in the global supply chain
- Higher interest rates
- Wars and other conflicts, including the current conflict between Russia and Ukraine
- Evolving return-to-office and hybrid working trends
Historical Earnings Impact
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Avg. Return Before/After Earnings
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