Xerox announced its 2022 second-quarter results.
- $1.75 billion of revenue, down 2.6 percent year-over-year or up 1.1 percent in constant currency.
- GAAP (loss) earnings per share (EPS) of $(0.05), down $0.51 year-over-year, and adjusted EPS of $0.13, down $0.34 year-over-year.
- Adjusted operating margin of 2.0 percent, down 500 basis points year-over-year.
- Operating cash flow use of $85 million, lower by $299 million year-over-year.
- Free cash flow use of $98 million, lower by $296 million year-over-year.
“While we mourn the passing of our leader and friend, John Visentin, we continue to be guided by – and benefit from – the four strategic initiatives he articulated for returning Xerox to long-term, sustainable growth,” said Xerox interim CEO Steve Bandrowczak. “Our revenue grew in constant currency in the second quarter, driven by improving demand for our products and services and the realization of pricing growth. Inflation and supply chain challenges affected margins this quarter, but we expect sequential margin improvement throughout the remainder of the year as we realize further price increases, Project Own It savings, and benefits from a more favorable supply chain environment. Strong demand and line of sight to margin improvement give us confidence to reiterate full-year guidance.”
We are maintaining our revenue and free cash flow guidance for 2022. Our guidance assumes supply chain disruption will begin to subside and return-to-office trends will continue to improve throughout the second half of the year. Our free cash flow guidance excludes a one-time payment associated with a product supply contract termination charge.
- Revenue of at least $7.1 billion in actual currency.
- Free cash flow of at least $400 million.
- Return at least 50% of free cash flow to shareholders.