Xerox Cuts FY24 Outlook After Q3 Results Miss Street; Stock Drops In Pre-market

(RTTNews) - Workplace technology company Xerox Holdings Corp. (XRX), while reporting a hefty loss in its third quarter with weak revenues, on Tuesday trimmed its fiscal 2024 margin and revenue forecast.

In pre-market activity on the Nasdaq, Xerox shares were losing around 14.8 percent to trade at $8.76.

For fiscal 2024, the company now expects adjusted operating margin of around 5 percent, lower than previously expected at least 6.5 percent.

Revenue for the year is now expected to be down around 10 percent in constant currency, while the previous outlook was a decline of 5 percent to 6 percent in constant currency.

The outlook was lowered to reflect additional reductions in non-strategic revenue and lower-than-expected equipment sales.

Due to lower-than-expected revenue in 2024, Xerox said it no longer expects to grow adjusted operating income $300 million above 2023 levels by 2026. However, the firm continues to expect growth in adjusted operating income and a return to double-digit adjusted operating income margin over the course of its Reinvention.

In its third-quarter, Xerox reported net loss attributable to shareholders of $1.21 billion or $9.71 per share, compared to last year's profit of $45 million or $0.28 per share.

Adjusted earnings were $34 million or $0.25 per share for the period, compared to $77 million or $0.46 per share a year ago.

Revenue for the quarter declined to $1.528 billion from $1.652 billion in the same period last year.

Analysts on average expected the company to report earnings of $0.51 per share on sales of $1.63 billion, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

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