Xerox Holdings Corporation

Despite the fact that 2022 was a challenging year for Xerox Holdings, the company managed an all-around beat in the last result. Supply chain challenges, surging inflation, currency disruption, the Ukraine war, higher interest rate, and an uncertain macroeconomic environment impacted revenue and profitability overall. Despite these difficulties, the company’s full-year revenue exceeding their initial projection of at least $7.1 billion. Equipment revenue grew significantly in Print and Managed Print Services due to improved product supply. Consumables, such as paper and supplies, increased this quarter once more, and contractual print services increased by low single digits in constant currency, with contributions from the recently acquired Go Inspire. IT Services revenue increased by double digits. Robotics process automation solutions and Xerox Automation experienced considerable quarter-over-quarter growth in signings. This year, the company intends to release a number of customer experience applications, such as CareAR Instruct, to enhance equipment setup, security, and productivity for users of small and home offices. We give Xerox Holdings Corporation an ‘Underperform’ rating with a revised target price.