Xerox is reporting a dip in earnings and sales in its first quarter, citing the coronavirus pandemic being the main factor.
The company saw a $2 million loss in the first quarter compared to last year at this time, and sales were down by more than 14%, but the revenues of $1.86 billion did come in higher than analysts estimated. Earnings per share came in below estimates.
The company notes that the COVID-19 pandemic has negatively impacted the global economy and disrupted customer spending.
George Conboy from Brighton Securities said it’s not a surprise, that like other businesses, Xerox took a hit in the first quarter.
“Xerox had a tough quarter, I think primarily because a meaningful part of their business is capital expenditures," Conboy said. "As companies in late February and March began to look at, ‘should we buy another copier, should we buy more equipment?’ It was an easy decision for them to postpone and that hit Xerox in the wallet.”
Xerox is looking for somewhat of a rebound in the second half of the year as more businesses reopen, but it has withdrawn the financial guidance for the year it previously had issued.
Xerox CEO John Visentin said he is proud of his team’s “dedication and ingenuity” in recent weeks, as the company responded to the pandemic by doing things like helping produce low-cost ventilators and other health care supplies.
