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Inflation, supply chain challenges impact Xerox’s third-quarter results
Inflation, supply chain challenges impact Xerox’s third-quarter results
Xerox Holdings Corp. reported a third-quarter loss Tuesday before markets opened, as the company continues to struggle with supply chain challenges and high inflation.
The company reported a loss of $383 million, or $2.48 a share, compared to net income of $90 million, or 48 cents a share, during the prior year’s quarter.
Adjusted net income was 19 cents a share.
Revenue was $1.751 billion, down slightly from sales of $1.758 billion a year ago.
“Top-line strength and cost discipline resulted in sequential improvement to our adjusted operating margin this quarter, but profitability remains challenged by persistently high inflation and continued supply chain constraints,” said Steve Bandrowczak, Xerox’s CEO, in a statement, adding that the company is now focused on improving operating margins and free cash flow in the near term. “Longer-term, I am confident we can expand and capture more of the addressable market within – and create value for – our existing client base by further embedding our offerings into their workflows.”
The company adjusted its revenue guidance, primarily to reflect higher-than-expected currency effects associated with a weaker Euro and British Pound.
Xerox now expects annual revenue in the range of $7.0 to $7.1 billion in actual currency versus previous estimates of revenue from at least $7.1 billion.
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