...April 21, 2021 NEW YORK (S&P Global Ratings) April 21, 2021--U.S.-based printer and information technology (IT) services provider Xerox Holdings Corp. (##/Stable/--) reported a 14.2% year-over-year (yoy) increase in its equipment sales in the first quarter of 2021, though its more profitable post-sale revenue (78% of total revenue) declined by 15.6%. The company's total revenue declined by 10.4% yoy and its adjusted profit margin fell to 5.2% from 6.6% in full year 2020, though it improved from 4.7% in the first quarter of 2020. Xerox reiterated its outlook for 2021, including its expectation for a 2.5% increase in its revenue and an expansion in its margin that will enable it to generate free cash flow of at least $500 million. We view the company's remarks as reflecting that its operating environment is becoming more stable and it is experiencing a slight business recovery, which it believes will continue in the upcoming quarters. While the improvement in its demand will depend on an...
