Xerox Falls As Inflation and Supply Chain Pressures Impact Earnings
2022.04.21 17:21
By Sam Boughedda
Investing.com — Xerox Corp. (NASDAQ:XRX) reported its first quarter earnings before the bell Thursday, sending its stock tumbling more than 18.5%.
The company, which sells print and digital document products and services, reported a loss per share of 12 cents on revenue of $1.67 billion. Analysts polled by Investing.com expected earnings per share of 29 cents on revenue of $1.65 billion.
The company blamed broad-based inflationary pressure and increased logistics costs from supply chain disruption for its operating loss. However, it expects to offset most of these cost increases with price actions, and additional “Project Own It” savings.
“Revenue was in line with expectations this quarter despite an increasingly volatile operating environment,” said Xerox Vice Chairman and CEO John Visentin.
Xerox maintained its 2022 revenue guidance of “at least $7.1 billion.” However, it warned that the guidance assumes supply chain disruptions will subside and return to office trends will continue to improve in the second half of the year.
