Xerox Withdraws 2020 Guidance, Reports $2M First-Quarter Loss

Xerox withdraws its 2020 financial guidance, citing the impact of the coronavirus pandemic.
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Xerox  (XRX) - Get Report on Tuesday withdrew its 2020 financial guidance, citing the impact of the coronavirus pandemic, and the copy machine maker missed Wall Street's first-quarter earnings expectations.

Shares were down slightly to $17.78 in premarket trading.

The Norwalk, Conn.-based company posted a loss of $2 million, or 3 cents a share, down from profit of $133 million, or 55 cents a share, a year ago. Adjusted earnings came to 21 cents a share, while analysts polled by FactSet were forecasting earnings of 21 cents.

Xerox's revenue totaled $1.86 billion, down 14.7% from a year ago, but beat Wall Street's call for  $1.78 billion.

Last month, Xerox scrubbed its $35 billion hostile takeover bid for HP Inc.  (HPQ) - Get Report out of concern about the coronavirus outbreak. Xerox initiated the takeover bid late last year and the two companies went back and forth acrimoniously on terms of the deal.

The company said in January it expected to generate adjusted profit of as much as $3.70 a share on revenue of $8.63 billion in fiscal 2020.

Xerox reported $173 million of operating cash flow from continuing operations, down $49 million year over year, and $150 million of free cash flow, down $57 million year over year.

During the first quarter, the company closed four acquisitions, expanding Xerox’s small and medium-sized business market presence in the U.K. and Canada.

Xerox Vice Chairman and CEO John Visentin said in a statement that Xerox "saw an immediate impact to our business due to the rapid implementation of lockdown measures globally."

Last week, Xerox said it will make hand sanitizer in its factories in the United States and Canada to fight the spread of coronavirus, and start deliveries to healthcare organizations later this month.