Xerox Lifts FY23 Adj. Margin View, Backs Revenue Forecast - Update

(RTTNews) - Xerox Holdings Corp. (XRX), while reporting a profit in its first quarter, compared to last year's loss, with increased revenues, on Tuesday raised its fiscal 2023 forecast for adjusted operating margin and maintained revenue forecast.

For the full year, the company projects pre-tax income of around $220 million, and adjusted pre-tax income of around $375 million.

Adjusted operating margin is now expected to be in the range of 5 percent to 5.5 percent. The company previously projected adjusted operating margin of at least 4.7 percent, compared to last year's 3.9 percent.

For the year, revenue is still estimated to be flat to down low-single-digits in constant currency. In fiscal 2022, the company's revenues were $7.11 billion.

The company also continues to project free cash flow of at least $500 million.

For the first quarter, net income attributable to the company was $71 million or $0.43 per share, compared to loss of $56 million or $0.38 per share last year.

Adjusted earnings per share were $0.49, compared to loss of $0.12 a year ago. On average, four analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues were $1.72 billion, up from $1.67 billion a year ago. Analysts were also looking for revenues of $1.72 billion for the quarter.

In pre-market activity on Nasdaq, XRX shares were gaining around 2 percent to trade at $13.80.

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