Xerox Reports Declines in Q2

Xerox Reports Declines in Q2

Xerox released its fiscal results for the second quarter of the fiscal year 2022 (Q2, 2022), with highlights including:

• $1.75 billion of revenue, down 2.6% year-over-year or up 1.1% in constant currency.
• GAAP (loss) earnings per share (EPS) of $(0.05), down $0.51 year-over-year, and adjusted EPS of $0.13, down $0.34 year-over-year.
• Adjusted operating margin of 2.0%, down 500 basis points year-over-year.
• Operating cash flow use of $85 million, lower by $299 million year-over-year.
• Free cash flow use of $98 million, lower by $296 million year-over-year.

“Our revenue grew in constant currency in the second quarter, driven by improving demand for our products and services and the realization of pricing growth. Inflation and supply chain challenges affected margins this quarter, but we expect sequential margin improvement throughout the remainder of the year as we realize further price increases, Project Own It savings, and benefits from a more favorable supply chain environment. Strong demand and line of sight to margin improvement give us confidence to reiterate full-year guidance,” said Xerox interim CEO Steve Bandrowczak.

Xerox claims it will remain its revenue and free cash flow guidance for 2022, which includes：

• Revenue of at least $7.1 billion in actual currency.
• Free cash flow of at least $400 million.
• Return at least 50% of free cash flow to shareholders.

“Our guidance assumes supply chain disruption will begin to subside and return-to-office trends will continue to improve throughout the second half of the year. Our free cash flow guidance excludes a one-time payment associated with a product supply contract termination charge,” said the spokesman of Xerox.

Related：

• Xerox Reports Revenue Decline in Q1
• Xerox Releases Fourth Quarter and Full-Year Results
• Xerox Reports Flat Revenue in Q3
• Xerox Reports Growth in Q2
• Xerox Going Up or Down in 2020

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