Xerox is reporting 3rd quarter results which came in below analysts’ estimates.
The company reported on Tuesday it saw a GAAP net loss of $1.2 billion for the quarter, and total revenues of $1.53 billion were down 7.5% compared to a year ago.
The GAAP net loss includes certain one-time charges.
Xerox CEO Steve Bandrowczak said that, “While equipment revenue fell short of expectations, we continue to see steady progress from Reinvention initiatives taken to date.” He added that adjusted operating income grew over the last year and cited the company’s recent announcement about acquiring an IT services company, ITsavvy, which Bandrowczak said will help Xerox with its sales efforts.
Xerox also lowered its financial guidance on revenues for 2024 overall.
The company said that the decline in equipment sales in the 3rd quarter was partly due to the delayed launch of two new products and Hurricane Helene also affected the timing of equipment installations.
Bandrowczak said with actions taken under Xerox’s ‘reinvention’ plan, the company has confidence that strategy will enable long-term profitable growth.
At Brighton Securities, Chairman George Conboy said that this was a “very difficult quarter for Xerox,” even when taking out certain one-time charges in that financial report.
Conboy said another concern for the company will be if Xerox continues to lose money, it could affect its current cash dividend, and if that happens, he said many investors may not want to hold the stock.
Xerox stock took a hit after earnings came out early Tuesday morning. At the close, the stock fell just over 17%. It was down $1.79 to close at $8.49 a share.
