Xerox stock sinks as profit falls to less than half what was expected and revenue falls shy

Shares of Xerox Holdings Corp. XRX, -0.93% sank 6.5% in premarket trading Tuesday, after the copier and other workplace hardware company reported third-quarter profit that was less than half what was expected, citing “persistently high inflation and supply chain constraints, and lowered its full-year outlook. The company swung to a net loss of $383 million, or $2.48 a share, from net income of $90 million, or 48 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share fell to 19 cents from 48 cents, and was well below the FactSet consensus of 40 cents. Revenue slipped 0.4% to $1.75 billion, missing the FactSet consensus of $1.77 billion. Total costs and expenses jumped 27.3% to $2.13 billion. For 2022, the company lowered its guidance for revenue, in actual currency, to a range of $7.0 billion to $7.1 billion from “at least” $7.1 billion. Free cash flow guidance was cut to “at least” $125 million from at least $400 million. The stock has gained 2.1% over the past three months through Monday, while the S&P 500 SPX, +1.19% has lost 4.3%.