Xerox Holdings Corp. (NYSE: XRX) witnessed a significant surge in pre-market trading on Tuesday, with its stock up by 4.3% after announcing better-than-expected adjusted profits for the second quarter. The company reported a widened net loss of $61 million, or 41 cents per share, compared to a loss of $4 million, or 5 cents per share, during the same period last year. However, Xerox’s adjusted profit for the three months ended June 30 saw a notable increase to 44 cents per share, up from 13 cents per share in the year-ago quarter. This outperformed the estimate of 32 cents per share suggested by FactSet analysts.
Xerox also recorded a slight revenue growth, with figures rising to $1.754 billion from $1.747 billion, aligning with the analyst target of $1.754 billion.
Positive Outlook for Xerox
Looking ahead, Xerox remains confident about its future prospects. The company anticipates flat to slightly declining revenue in constant currency for 2023, while analysts predict a drop to $6.99 billion from $7.12 billion during the same period. In terms of profitability, Xerox expects its adjusted operating income margin to increase to a range of 5.5% to 6%, as opposed to the previous range of 5% to 5.5%. This is primarily attributed to a stronger-than-anticipated realization of operating efficiencies and an improved revenue mix.
Xerox’s robust performance in the second quarter is indicative of its commitment to delivering exceptional results in a challenging market. With a focus on operational efficiency and strategic revenue initiatives, Xerox stands poised to overcome upcoming hurdles and reinforce its market position.