Xerox Holdings Corp. reported a fourth-quarter FY21 sales decline of 7.9 percent year-on-year, to $1.78 billion, missing the consensus of $1.82 billion.
Adjusted EPS of $0.34 beat the consensus of $0.33.
Equipment sales declined 24.7 percent Y/Y, while Post sale revenue decreased 1.9 percent Y/Y.
Sales in the Americas declined 9.3 percent Y/Y, and EMEA decreased 5.8 percent.
Margins
The gross margin contracted 330 basis points Y/Y to 32.9 percent. The adjusted operating margin shrank 470 basis points to 4.8 percent.Xerox held $1.9 billion in cash and equivalents. Operating cash flow amounted to $198 million during the quarter.
Outlook
Xerox expects to grow revenue in 2022. The company sees FY22 revenue of $7.1 billion in actual currency versus the consensus of $7 billion.By Anusuya Lahiri
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