Revenue and profit are down but shareholders (Carl Icahn) gets 50% of free cash flow.
No mention of reinvesting in the company.
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Print is dying, at this point the smart thing is to treat the company as a late stage cash cow. Clearly the market is not willing to value the non-contributing “high growth areas” CareAR, Elem, Eloque, Parc etc., so why spend money on it?
People here have trouble accepting reality.
Its not the tree in front of you: its the forest.
Printing is a dying industry.
Don't blame the captain for the raging storm.
Huge drop in the stock price today. It was down 17% this morning but ended up down 15.6% at the close. Largest one day decline I've seen in a very long time. Things aren't looking good. Nasdaq article below.
https://www.nasdaq.com/articles/why-xerox-stock-crashed-on-thursday
What happened
Shares of printing technology leader Xerox (NASDAQ: XRX) plummeted in early trading on the Nasdaq Thursday -- down a staggering 17.8% as of 10:20 a.m. ET after the company reported a gargantuan earnings miss.
Heading into the first quarter of 2022, analysts had forecast that Xerox would earn at least a pro forma profit of $0.13 per share on $1.64 billion in sales. As it turned out, Xerox beat the sales number, delivering $1.67 billion. But instead of earning money, Xerox lost it -- $0.12 per share, pro forma.
And that was the good news.
The bad news is that when calculated according to generally accepted accounting principles (GAAP), Xerox's loss was actually much, much bigger: $0.38 per share. And even the sales beat wasn't entirely good news, because $1.67 billion in revenue actually represented a 2.5% decline for Xerox year over year.
Xerox did at least report positive free cash flow (FCF) for the quarter, but at a mere $50 million, FCF was cut in half from one year ago.
Now what
CEO John Visentin blamed "an increasingly volatile operating environment" for the loss, but insisted that "underlying demand for our products and services remains strong, pointing to rising backlog and "improving page volumes."
Looking ahead, he predicted Xerox will slowly turn things around this year, reversing declining sales to deliver about 1% revenue growth ($7.1 billion) by year-end, with free cash flow of $400 million. Granted, that would still represent a 29% decline in FCF year over year, but it would be better than the Q1 news -- and at current prices, this would value Xerox stock at roughly eight times current-year FCF.
Investors today seem to think even that's not cheap enough, but with Xerox paying a healthy 5.1% dividend yield and promising at least modest sales growth, I kind of wonder if maybe this stock has finally gotten cheap enough to buy
No coming back. Xrx is a dead company walking. Nothing left to see here folks.
there were comments on this forum 2 years ago when pandemic hit “Xerox revenue will be back, when everyone returns to office!” And look at the numbers. Worse than last year.
Incompetent, ruthless management can only outrun reality for so long.
Aww look at your stock melt down.
Disgusting to bona fide, hard working emplioyees
Accelerating cost reductions by 50% (from $300M to $450M). Focus is on Free Cash flow hitting numbers.