Xerox Holdings(US:XRX)2024-10-29 12:05Financial Performance - Q3 2024 - Revenue decreased by 75% year-over-year to $1528 billion, or 73% in constant currency[9, 10] - Adjusted operating margin was 52%, an increase of 110 basis points year-over-year[9] - The company reported a GAAP loss per share of $(971), which includes an after-tax non-cash goodwill impairment charge of approximately $10 billion, or $816 per share, and a tax expense charge of $161 million, or $129 per share[2, 9] - Adjusted earnings per share were $025, a decrease of 46% year-over-year[2, 9] - Free cash flow was $107 million, compared to $112 million in Q3 2023[2, 13] Strategic Initiatives and Cost Savings - The company identified over $700 million in gross cost savings through geographic and offering simplification[4] - The company expects close to $200 million in incremental gross Reinvention savings in 2024[22] - The company expects around $125 million of incremental gross Reinvention savings from actions taken or expected to be taken in the near-term (2025-2026)[22] ITsavvy Acquisition - Xerox announced the intended acquisition of ITsavvy for $400 million[5] - ITsavvy has LTM revenue of approximately $445 million with 9% year-over-year growth and LTM EBITDA of approximately $30 million[6] - The acquisition is expected to be immediately accretive to adjusted earnings per share and free cash flow[6] Guidance - The company expects a revenue decline of approximately 10% in constant currency for the full year 2024[8, 23] - The company expects an adjusted operating margin of approximately 50% for the full year 2024[8, 23] - The company expects free cash flow to be in the range of $450 million to $500 million for the full year 2024[8, 23]