Xerox Says On Track for a Profitable 2023
Xerox earnings are out and for the first time in recent memory, they had good news to share.
Revenue is up year over year and they had increases in virtually all areas of unit sales; entry-level, mid-range and high-end.
- 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. Prior year Q4 GAAP EPS includes an after-tax non-cash goodwill impairment charge of $4.38 per share.
- 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.
- Operating cash flow of $186 million, down $12 million year-over-year.
- Free cash flow of $168 million, down $14 million year-over-year.
- Revenue of $7.11 billion, up 1.0 percent year-over-year, or up 4.8 percent in constant currency.
- GAAP loss per share of $2.15, up $0.41 year-over-year. Both the current year and prior year include after-tax non-cash goodwill impairment charges of $2.54 and $4.08 per share, respectively.
- Adjusted EPS of $1.12, down $0.39 year-over-year.
- Adjusted operating margin of 3.9 percent, down 140 basis points year-over-year.
- Operating cash flow of $159 million, down $470 million year-over-year.
- Free cash flow of $143 million, excluding a one-time product supply termination charge, down $418 million year-over-year.
A union of firefighters in Miami, along with other shareholders, is concerned about the potential negative impact on jobs and resources if Icahn’s hostile takeover bid of Xeros is successful.
Icahn announced his intention to acquire Xerox in January 2018. He currently owns a significant stake in the company and has been pushing for changes in leadership and strategy.
This case is back in the news because Carl Icahn’s legal team had tried to have a motion for summary judgement filed, which was denied on January 6, 2023,
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