NASDAQ$XRX
Xerox Corp · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Xerox's Q4 2022 financial performance improved year-over-year, driven by resilient demand and supply chain improvements.
Xerox Holdings Corporation reported Q4 2022 revenue of $1.94 billion, up 9.2% year-over-year, and adjusted EPS of $0.89, up $0.55 year-over-year. The company's Q4 performance was driven by strong demand and improvements in supply chain conditions. The company guides to improved profitability in 2023.
- Revenue of $1.94 billion, up 9.2 percent year-over-year or up 13.9 percent in constant currency.
- GAAP earnings per share (EPS) of $0.74, up $4.71 year-over-year.
- Adjusted EPS of $0.89, up $0.55 year-over-year.
- Adjusted operating margin of 9.2 percent, up 440 basis points year-over-year.
Headline financials
Revenue & EPS history
Xerox · Revenue · Quarterly
$1.94B
Revenue by segment
Xerox · $1.78B total across 2 segments · Q4 2021
- Post Sale Revenue$1.39B-1.9%78.4%
- Equipment Sales$384M-24.7%21.6%
Forward guidance
Xerox provided guidance for 2023 including revenue growth, adjusted operating margin, and free cash flow.
Tailwinds
- Revenue growth: flat to down low-single-digits in constant currency
- Adjusted Operating Margin: at least 4.7%
- Free cash flow: at least $500 million
- Free cash flow guidance includes the net benefit of a receivable funding agreement recently signed with an affiliate of HPS Investment Partners.
- Expect profitability to improve further in 2023 as we realize the benefits of price and cost actions taken in 2022, further improvements in product availability, lower logistics costs and additional operating efficiencies.
Headwinds
- Macroeconomic uncertainty extends through this year.
- 2022 was a challenging year as revenue and profitability was impacted by an uncertain and unpredictable macroeconomic environment, which included increasing inflation and higher interest rates, supply chain challenges, currency disruption and a war in Ukraine.
- Total Revenue is expected to be flat to down low-single-digits in constant currency1 in 2023.
- We will continue working alongside our clients to develop and deploy essential workplace solutions and services.
- We expect adjusted1 operating income margin to be at least 4.7%, an 80 basis point increase over 2022 levels
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q4 2022
-0.7%
Avg return
Earnings day
+0.7%
Avg return
5 days after
+1.7%
Avg return
30 days after
50%
32 / 64 earnings
Positive
+39.2%
Q1 2026
Best reaction
-19.9%
Q3 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +39.2% | +68.2% | +106.4% | |
| Q4 2025 | -13.0% | -6.9% | -22.7% | |
| Q3 2025 | -1.7% | -8.5% | -26.7% | |
| Q1 2025 | -1.6% | +22.7% | +10.9% | |
| Q4 2024 | -5.8% | -12.0% | -28.6% | |
| Q3 2024 | -19.9% | -19.4% | -11.9% | |
| Q2 2024 | -6.4% | -5.9% | -8.4% | |
| Q1 2024 | -12.4% | -14.7% | -16.0% | |
| Q4 2023 | +15.9% | +15.9% | +12.4% | |
| Q3 2023 | -10.2% | -9.6% | +1.1% | |
| Q2 2023 | +8.3% | +2.7% | -0.1% | |
| Q1 2023 | +13.2% | +15.3% | +2.5% | |
| Q4 2022 | -3.4% | -6.0% | -6.5% | |
| Q3 2022 | -9.0% | -9.5% | -1.0% | |
| Q2 2022 | +7.2% | +9.9% | +15.6% | |
| Q1 2022 | -13.7% | -12.0% | -13.5% | |
| Q4 2021 | -4.1% | -2.2% | -5.7% | |
| Q3 2021 | -13.5% | -13.5% | -1.8% | |
| Q2 2021 | +3.2% | +2.2% | -5.4% | |
| Q1 2021 | -3.9% | -3.7% | -6.5% | |
| Q4 2020 | +0.6% | +1.3% | +22.2% | |
| Q3 2020 | -8.9% | -8.1% | +23.6% | |
| Q2 2020 | +0.3% | +5.2% | +20.7% | |
| Q1 2020 | +8.2% | -4.4% | -5.7% | |
| Q4 2019 | +4.8% | +1.5% | -3.5% | |
| Q3 2019 | +10.8% | +8.7% | +26.0% | |
| Q2 2019 | -5.4% | -9.9% | -15.2% | |
| Q1 2019 | -4.1% | -1.0% | -5.3% | |
| Q4 2018 | +15.9% | +17.4% | +27.2% | |
| Q3 2018 | +3.7% | +3.7% | -4.6% | |
| Q2 2018 | +3.3% | +4.8% | +10.6% | |
| Q1 2018 | -3.4% | -3.4% | -6.9% | |
| Q4 2017 | +0.2% | -4.0% | -8.0% | |
| Q3 2017 | -7.9% | -8.4% | -13.9% | |
| Q2 2017 | +6.1% | +5.1% | +5.2% | |
| Q1 2017 | +0.6% | +1.8% | -1.0% | |
| Q4 2016 | +1.7% | +2.9% | +4.9% | |
| Q3 2016 | +2.1% | -0.6% | -2.0% | |
| Q2 2016 | +2.3% | +0.3% | -1.8% | |
| Q1 2016 | -12.2% | — | — | |
| Q4 2015 | +2.1% | — | — | |
| Q3 2015 | -10.1% | — | — | |
| Q2 2015 | -1.8% | — | — | |
| Q1 2015 | -11.6% | — | — | |
| Q4 2014 | -1.3% | — | — | |
| Q3 2014 | -3.2% | — | — | |
| Q2 2014 | +2.0% | — | — | |
| Q1 2014 | +4.3% | — | — | |
| Q4 2013 | -9.8% | — | — | |
| Q3 2013 | -9.5% | — | — | |
| Q2 2013 | -1.4% | — | — | |
| Q1 2013 | -2.7% | — | — | |
| Q4 2012 | +7.4% | — | — | |
| Q3 2012 | +0.1% | — | — | |
| Q2 2012 | +0.0% | — | — | |
| Q1 2012 | +0.9% | — | — | |
| Q4 2011 | +3.0% | — | — | |
| Q3 2011 | -8.5% | — | — | |
| Q2 2011 | +4.5% | — | — | |
| Q1 2011 | +2.1% | — | — | |
| Q4 2010 | +2.0% | — | — | |
| Q3 2010 | +2.0% | — | — | |
| Q2 2010 | -4.4% | — | — | |
| Q1 2010 | +3.1% | — | — |
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