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Xerox Reports $1.21 Billion Loss in 3Q,
Cuts 2024 Revenue Forecast Amid Declining Copier Demand.
Xerox Holdings has announced a substantial loss of $1.21 billion, or $9.71 per share, for the third quarter, prompting the company to lower its revenue outlook for 2024 due to ongoing declines in photocopier demand. This loss was slightly less severe than the $1.31 billion, or $10.55 per share, recorded in the same quarter last year.Excluding certain one-off items, Xerox reported adjusted earnings of 25 cents per share, falling short of the Wall Street consensus estimate of 51 cents.
The company’s third-quarter revenue decreased by 7.5% to $1.53 billion, missing analyst expectations of $1.63 billion, according to FactSet. Xerox now anticipates a 10% decline in 2024 revenue on a constant-currency basis, revising its earlier forecast of a 5% to 6% drop. Additionally, the company has lowered its long-term growth expectations, stating it no longer anticipates increasing adjusted operating income by $300 million above 2023 levels.
Despite these challenges, Xerox maintains a long-term outlook of growth in adjusted operating income and aims for a return to double-digit margins. These projections do not include the impact of its recent $400 million acquisition of ITsavvy, an information technology services firm.
Shares of Xerox fell 12% to $9.08 in premarket trading. The Norwalk, Connecticut-based company has been focusing on expanding its IT services in recent years as part of its strategic shift.
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