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Dec 31, 2023
Xerox Q4 2023 Earnings Report
Xerox's Q4 2023 earnings were released, revealing a year of Reinvention with revenue decline but adjusted operating margin and free cash flow guidance were achieved.
Key Takeaways
Xerox's Q4 2023 results show a revenue of $1.77 billion, a decrease of 9.1% year-over-year. The company reported a GAAP net loss of $(58) million, or $(0.50) per share, and an adjusted net income of $56 million, or $0.43 per share. Free cash flow was $379 million, up $211 million year-over-year.
Revenue was $1.77 billion, down 9.1 percent year-over-year.
GAAP net loss was $(58) million, or $(0.50) per share.
Adjusted net income was $56 million, or $0.43 per share.
Free cash flow was $379 million, up $211 million year-over-year.
Xerox
Xerox
Forward Guidance
Xerox anticipates a revenue decline of 3% to 5% in constant currency for 2024. They expect an adjusted operating margin of at least 7.5% and free cash flow of at least $600 million.
Positive Outlook
- Stable Print demand
- Growth in Digital and IT Services
- Neutral macroeconomic conditions
- Margin guidance implies adjusted operating income margin improvement of more than 190 basis points
- Adjusted operating income improvement of more than $100 million, year-over-year.
Challenges Ahead
- Around 200 basis points of headwind from prior-year backlog reduction
- Around 200 basis points from the deemphasis of certain non-strategic revenue, including lower sales of paper
- Revenue decline of 3% to 5% in constant currency
- Restructuring payments
- Higher cash taxes and an increase in pension contributions