Xerox loss widens but adjusted profit beats Wall Street estimate

Xerox Holdings Corp.
XRX,
+5.45%
stock was up by 4.3% in pre-market trades Tuesday after its adjusted profit beat analyst forecasts. Xerox said its second-quarter net loss widened to $61 million, or 41 cents a share, from a loss of $4 million, or 5 cents a share, in the year-ago quarter. Xerox’s adjusted profit for the three months ended June 30 increased to 44 cents a share, from 13 cents a share in the year-ago quarter. The company beat the analyst forecast of 32 cents a share, according to estimates compiled by FactSet. Xerox’s revenue rose slightly to $1.754 billion from $1.747, in line with the analyst target of $1.754 billion. Looking ahead, Xerox said it expects 2023 revenue to be flat to down low-single-digits in constant currency, while analysts expect the company’s 2023 revenue to drop to $6.99 billion in 2023 from $7.12 billion in 2023. Adjusted operating income margin is expected to increase to a range of 5.5% to 6%, from a range of 5% to 5.5%, “due to a stronger-than-expected realization of operating efficiencies and revenue mix,” the company said.