Xerox misses by $0.26, misses on revs, lowers FY24 revenue, adjusted operating margin, and free cash flow guidance
- Reports Q3 (Sep) earnings of $0.25 per share, excluding non-recurring items, $0.26 worse than the FactSet Consensus of $0.51; revenues fell 7.5% year/year to $1.53 bln vs the $1.63 bln FactSet Consensus.
- Lowers guidance, sees FY24 revenue declining around 10% in constant currency vs. prior guidance of down 5-6%; sees adjusted operating margin of around 5.0% vs. prior guidance of at least 6.5%. Free cash flow of $450-$500 mln, down from at least $550 mln.
- 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," said Steve Bandrowczak, chief executive officer at Xerox.
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