Steady demand sent up the Xerox quotes

The company — supplier of printing solutions Xerox Holdings Corporation (XRX) published a favorable report for the second quarter of 2022, which caused a 5% increase in quotations to $16.38 at auction on July 26. The Xerox Holdings report was better than expected. Despite the negative headlines and fears of a recession, demand for Xerox products remains steady, and revenue showed an increase of 1.1% to $1.75 billion, excluding the impact of exchange rates. Earnings per share amounted to $0.13. Xerox shares have long been out of the spotlight of many investors and experts from Wall Street. 

Nevertheless, the company continues its strategic transformation, the demand for its solutions remains, and it was able to make a profit, even against supply chain problems and declining margins. The company expects margin improvement in the remaining months of 2022, including price increases that allowed Xerox to maintain the old annual revenue forecast, unlike many companies that have lowered their expectations in the current environment. Xerox expects that the trend of returning employees to offices will continue. 

At the same time, the company is developing a segment of solutions for hybrid and remote work, employees who use their own devices in the office. For example, Xerox has an application for dedicated printing, where a document can be sent to the office for printing via the Internet, including from an iOS or Android mobile device. Xerox aims to increase the share of services in its portfolio to meet promising trends is an essential task for the strategic transformation of Xerox since integrated IT services reduce the need for physical equipment to solve specific tasks. So, in the second quarter, sales of Xerox equipment decreased by 14.7%.