Xerox Holdings Corp., a prominent technology company, has reported a loss in the latest quarter due to sluggish sales performance. On Thursday, the company also projected a drop in sales for the fiscal year 2024 on constant currency terms. However, it anticipates that the adjusted operating margin will outperform the previous year.
Xerox expects another solid year of growth in adjusted operating revenue. The company reasserted its three-year goal to rake in an incremental adjusted operating income of $300 million by 2023 and to recover a double-digit adjusted operating income margin by 2026.
For fiscal 2024, the company forecasts a decrease in revenue from 3 percent to 5 percent in constant currency, from $6.89 billion revenue recorded for fiscal 2023.
The company is positive about achieving an adjusted operating margin of at least 7.5 percent, rising from the previous year's 5.6 percent.
Xerox anticipates a steady demand for Print, enhancement in Digital and IT Services, and neutral macroeconomic climate. The company also expects a free cash flow of a minimum of $600 million.
Steve Bandrowczak, CEO of Xerox, stated, "As we step into 2024, our focus lies in stabilizing and reinforcing our base Print business. We aim to drive efficiency and productivity gains across the enterprise through our new Global Business Services branch and seize opportunities in Digital and IT Services."
In the fourth quarter, the company suffered a net loss of $58 million or $0.50 per share, compared with a profit of $121 million or $0.74 per share the previous year.
Adjusted net income stood at $56 million or $0.43 per share, a fall from the previous year's $146 million or $0.89 per share.
According to data gathered by Thomson Reuters, analysts had, on average, predicted the company would report earnings of $0.53 per share. These estimates usually exclude specific items.
The fourth quarter revenue was $1.77 billion, down by 9.1 percent from $1.94 billion recorded in the same period last year. The revenue decreased by 10.6 percent in terms of constant currency.
