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Dec 31, 2022
Xerox Q4 2022 Earnings Report
Xerox's Q4 2022 financial performance improved year-over-year, driven by resilient demand and supply chain improvements.
Key Takeaways
Xerox Holdings Corporation reported Q4 2022 revenue of $1.94 billion, up 9.2% year-over-year, and adjusted EPS of $0.89, up $0.55 year-over-year. The company's Q4 performance was driven by strong demand and improvements in supply chain conditions. The company guides to improved profitability in 2023.
Revenue of $1.94 billion, up 9.2 percent year-over-year or up 13.9 percent in constant currency.
GAAP earnings per share (EPS) of $0.74, up $4.71 year-over-year.
Adjusted EPS of $0.89, up $0.55 year-over-year.
Adjusted operating margin of 9.2 percent, up 440 basis points year-over-year.
Forward Guidance
Xerox provided guidance for 2023 including revenue growth, adjusted operating margin, and free cash flow.
Positive Outlook
- Revenue growth: flat to down low-single-digits in constant currency
- Adjusted Operating Margin: at least 4.7%
- Free cash flow: at least $500 million
- Free cash flow guidance includes the net benefit of a receivable funding agreement recently signed with an affiliate of HPS Investment Partners.
- Expect profitability to improve further in 2023 as we realize the benefits of price and cost actions taken in 2022, further improvements in product availability, lower logistics costs and additional operating efficiencies.
Challenges Ahead
- Macroeconomic uncertainty extends through this year.
- 2022 was a challenging year as revenue and profitability was impacted by an uncertain and unpredictable macroeconomic environment, which included increasing inflation and higher interest rates, supply chain challenges, currency disruption and a war in Ukraine.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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