Xerox Releases Fourth Quarter and Full-Year Results

Xerox Releases Fourth Quarter and Full-Year Results

According to Xerox, revenue turned out to be $1.78 billion in the fourth quarter of fiscal year 2021 (Q4, 2021), down 7.9 percent year-over-year, or down 7.4 percent in constant currency.

For fiscal year 2021, Xerox reported a revenue of $7.04 billion, up 0.2 percent year-over-year, or down 1.4 percent in constant currency.

Some other highlights include:

• Q4 and FY GAAP (loss)/earnings per share (EPS) was of $(3.97) and $(2.56), down $4.33 and $3.40 year-over-year, respectively. Both Q4 and FY GAAP EPS includedan after-tax non-cash goodwill impairment charge of $750 million or $4.38 and $4.08 per share, respectively.
• Q4 and FY adjusted EPS was of $0.34 and $1.51, down $0.24 and up $0.10 year-over-year, respectively.
• Q4 adjusted operating margin was of 4.8 percent, down 470 basis points year-over-year; FY adjusted operating margin was of 5.3 percent, down 130 basis points year-over-year.
• Operating cash flow in Q4was $198 million, down $37 million year-over-year; while FY operating cash flow turned out to be $629 million, up $81 million year-over-year.
• Free cash flow in Q4was $182 million, down $39 million year-over-year; while FY free cash flow was $561 million, up $87 million year-over-year.
• Delivered $375 million of targeted 2021 gross cost savings through Project Own It, or $1.8 billion since inception.
• Returned more than $1 billion to shareholders, close to double FY 2021 free cash flow.

“Despite continued uncertainty associated with supply chain conditions and the pandemic, we are confident in our ability to deliver at least $7.1 billion of revenue in actual currency, and at least $400 million of free cash flow in 2022. Our confidence stems from strong demand for our products and services, and continued strength in correlations between in-office work and post sale revenue,” said the spokesman of Xerox.

“We expect growth will be weighted to the back half of the year, with revenue improving as supply chain conditions normalize and workers return to the office. We maintain our policy of returning at least 50% of annual free cash flow to shareholders. In recent years, we have delivered well in excess of that goal, but our current policy gives us the flexibility to pursue value accretive M&A and additional investments in innovation,” the spokesman added.

Related:

• Xerox to Sell Part of Webster Campus
• Xerox Reports Flat Revenue in Q3
• Xerox Reports Growth in Q2
• Xerox Going Up or Down in 2020
• John Visentin Proud of Xerox’s Fourth-Quarter and Full-Year Results

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