Xerox Holdings Corporation announced its third-quarter 2024 financial results on October 29, 2024, reporting total revenue of $1.528 billion, a 7.5% decrease in actual currency and a 7.3% decrease in constant currency year-over-year. The company posted a GAAP diluted loss per share of $(9.71), a significant decline from a $0.28 profit in Q3 2023, primarily due to an after-tax non-cash goodwill impairment charge of approximately $1.0 billion and a $161 million tax expense charge.
Adjusted operating income for the quarter was $80 million, an increase of 17.6% year-over-year, with an adjusted operating income margin of 5.2%, up 110 basis points. However, adjusted diluted earnings per share decreased by 45.7% to $0.25. Equipment sales declined by 12.2% in both actual and constant currency to $339 million, while total equipment installations increased by 17% year-over-year.
Xerox also updated its 2024 guidance, lowering revenue expectations to a decline of approximately 10% in constant currency, from a previous range of 5% to 6%. Adjusted operating income margin guidance was reduced to around 5.0% from at least 6.5%, and free cash flow guidance was lowered to a range of $450 million to $500 million. The company attributed these revisions to delayed global launches of two new products, lower-than-expected improvements in sales force productivity, and impacts from Hurricane Helene.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.