Xerox Holdings Corp. (NYSE: XRX) saw a rise in its stock by 1.6% in premarket trading on Tuesday following the announcement that the printer and copy-machines maker had swung to a third-quarter profit.
Xerox reported a net income of $49 million, or 28 cents a share, for the quarter, marking a significant improvement from the loss of $383 million, or $2.48 per share, in the same period last year. Adjusted earnings per share (EPS) came in at 46 cents, up from 19 cents in Q3 of the prior year, surpassing analysts’ estimate of 35 cents per share.
The company’s revenue for the quarter was reported at $1.652 billion, slightly lower than the $1.751 billion generated during the same period last year, missing analysts’ expectation of $1.731 billion.
Strong Execution Despite Challenging Environment
Xerox CEO, Steve Bandrowczak, stated that the growth in adjusted profit, EPS, and free cash flow reflects solid execution of their strategic priorities despite the challenging macroeconomic backdrop.
For 2023, Xerox anticipates a flat to low-single-digit decline in revenue in constant currency. However, they expect free cash flow to reach a minimum of $600 million. Xerox remains committed to simplifying and focusing its operations according to Bandrowczak.
Xerox’s stock has experienced a decrease of 7.7% in 2023 compared to the S&P 500 index’s gain of 9.8%.
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