XRX - Xerox stock slips as rising costs weigh on bottom line

Xerox (NASDAQ:XRX) shares plunged ~14% Thursday morning after the workplace technology company reported its Q1 results that were hurt by broad-based inflationary pressure and increased logistics costs from supply chain disruption. Revenue of $1.67B (-2.5% Y/Y) was in line with Xerox's expectations and exceeded Street estimates, but adj. earnings per share of -$0.12 fell short and was down $0.34 year-over-year. Operating losses (adj) were -$3M, compared with $89M income in the prior year quarter, while pre-tax losses came at -$89M (vs. $53M income last year). The company's bottom line was impacted by rising costs across the business, particularly for logistics and labor. Furthermore, supply constraints inhibited Xerox's ability to fulfill demand, bringing the backlog to $422M, a 21% sequential growth and around three times up from prior year's levels.  The management sees supply chain constraints beginning to subside in the second half of 2022. With respect to the war in Ukraine, the

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Xerox stock slips as rising costs weigh on bottom line