Xerox Q4 Profit Tops View, But Revenues Miss; Sees 2022 Revenue Above View

(RTTNews) - Workplace technology company Xerox Holdings Corp. (XRX) reported that its fourth quarter 2021 net loss attributable to the company was $675 million or $3.97 per share compared to net income of $77 million or $0.36 per share in the prior year.

The latest-quarter results included an after-tax non-cash goodwill impairment charge of $750 million or $4.38 per share. The charge largely reflected the fact that Xerox's print business has been and will continue to be impacted by the economic disruption caused by the COVID-19 pandemic, and included recognition that some companies will maintain some form of a hybrid workplace indefinitely.

Adjusted net income for the fourth quarter was $62 million or $0.34 per share compared to $122 million or $0.58 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Total revenues for the fourth-quarter declined to $1.78 billion from $1.93 billion in the previous year. Analysts expected revenues of $1.82 billion for the fourth quarter.

The company expects to grow revenue in 2022. It projects revenue of at least $7.1 billion in actual currency. Guidance assumes supply chain and pandemic-related disruptions persist through the first half of the year. Analysts expect annual revenue of $7 billion for fiscal year 2022.

For fiscal year 2022, the company expects to generate at least $400 million of free cash flow, inclusive of incremental cash investments in new businesses. It also expects to return at least 50% of free cash flow to shareholders.