Xerox Corporation (NYSE: XRX) saw its shares rise by 7.4% to $16.65 after reporting better-than-expected adjusted earnings for the second quarter of the year. The company’s adjusted earnings per share increased from 13 cents a share in the same period last year to an impressive 44 cents a share this year. This announcement comes as a welcome surprise to analysts, who had predicted adjusted earnings of 32 cents a share.
Positive Momentum
With a year-to-date increase of 14%, Xerox shares are on track to reach their highest close since March 6. The market has responded positively to the company’s strong performance, reflecting growing confidence among investors.
Revised Guidance
In addition to the positive financial results, Xerox raised its 2023 guidance. The company now expects a minimum free cash flow of $600 million and an adjusted operating margin in the range of 5.5% to 6%. Previously, Xerox had forecasted a minimum free cash flow of $500 million and an adjusted operating margin in the range of 5% to 5.5%. However, the revenue guidance remains unchanged, with expectations of flat to low-single-digit decline in constant currency.
Xerox’s optimistic outlook indicates a strong belief in its ability to deliver sustained growth and profitability in the upcoming years. This revised guidance further solidifies the company’s position as a market leader in enterprise printing.
Moving forward, Xerox is well-positioned to capitalize on market opportunities and continue its positive trajectory. Investors can look forward to the company’s strong financial performance and strategic initiatives driving shareholder value.
