Xerox Holdings Corp Expects FY24 Revenue Decline of 5%-6% (Prior 3%-5%) in Constant Currency Vs $6.45B Est

Author: Benzinga Newsdesk | July 25, 2024 06:34am

2024 Guidance Update

• Revenue: from a decline of 3% to 5% to a decline of 5% to 6% in constant currency 
• Adjusted  Operating Margin: from at least 7.5% to at least 6.5%
• Free cash flow: from at least $600 million to at least $550 million

2024 revenue guidance was lowered to reflect additional reductions in non-strategic revenue, including those associated with incremental Reinvention actions. Adjusted 1 operating income margin guidance was lowered primarily to reflect the reduction in revenue guidance, as well as higher-than-expected freight and product costs. Free cash flow 1 guidance was lowered to reflect lower revenue and adjusted 1 operating income margin guidance.

Guidance assumes growing Print demand and growth in Digital and IT Services in the second half of the year. The expected year-over-year decline in full-year revenue is attributable to the following: around 200 basis points of headwind from prior-year backlog reduction and 350 basis points from a reduction in certain non-strategic revenue, including lower sales of paper, financing income and Reinvention actions. Adjusted1 Operating Margin guidance implies full-year improvement of at least 90 basis points, primarily reflecting structural reductions in operating expense associated with our Reinvention.

The company maintains its three-year target of $300 million of incremental adjusted1 operating income above 2023 levels and a return to double-digit adjusted1 operating income margin by the end of 2026.

Posted In: XRX