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Xerox earnings & sales bounce back from pandemic lows

Jul 27, 2021

Credit xerox.com

Xerox is out with second-quarter earnings that topped analysts’ estimates.

Both profits and sales exceeded Wall Street’s expectations. Xerox earned $91 million in net profits in the quarter, up sharply from the $27 million that it earned at the same time last year when the pandemic was still peaking.

Revenues for the latest quarter totaled $1.79 billion, a 21% jump from a year ago.

CEO John Visentin said that the company saw increased equipment sales and print volumes consistent with a gradual return to the office.  

“Over the past 18 months, our team has successfully managed through an unprecedented level of uncertainty to continue delivering value to our clients. This focus will continue in the second half of the year as we manage through global supply chain disruption while investing for sustainable, long-term growth,” Visentin said.

Xerox said that it expects that measures to control the pandemic and expand economic activity will result in a moderate economic improvement in 2021.

But the company also said that in the near term, that recovery may be uneven and affected by the emergency of new variants of the COVID-19 virus which could result in a resurgence of cases in some regions.

Xerox said on Tuesday that its financial plan is assuming a “modest return of employees” to offices in the third quarter, with most employees working in the office by the end of the year. The company said because of that, it expects improvements in equipment sales and print volumes to continue in the second half of this year.