Benzinga | Jan 25, 2022 07:30AM EST

Xerox Registers 7.9% Revenue Decline In Q4; Sees Top-Line Growth In FY22

* Xerox Holdings Corp (NASDAQ:XRX) reported a fourth-quarter FY21 sales decline of 7.9% 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% Y/Y, while Post sale revenue decreased 1.9% Y/Y.

* Sales in the Americas declined 9.3% Y/Y, and EMEA decreased 5.8%.

* Margins: The gross margin contracted 330 basis points Y/Y to 32.9%. The adjusted operating margin shrank 470 basis points to 4.8%.

* 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.

* Price Action: XRX shares traded lower by 0.38% at $20.90 in the premarket session on the last check Tuesday.