Xerox Holdings Corporation (XRX - Free Report) reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The earnings beat failed to impress investors as the stock lost 2.5% since the company’s earnings release on Oct 24.
Adjusted EPS of 46 cents surpassed the Zacks Consensus Estimate by 35.3% and increased more than 100% year over year. Total revenues of $1.65 billion lagged the consensus mark by 3.5% and decreased 5.7% year over year on a reported basis. Revenues declined 7.4% on a constant-currency basis.
Xerox Holdings’ shares have lost 15% over the past year compared with the 4.5% decline of the industry it belongs to.
Revenue Details
Post-sale revenues came in at $1.27 billion, down 7% from the prior-year quarter’s figure and missing our estimate of $1.3 billion. Equipment sales decreased 1% year over year to $386 million, falling short of our estimate of $418.6 million. Equipment sales and post-sale revenues dipped 9% and 2.1%, respectively, year over year on a constant currency basis.
The Print and Other segment’s revenues totaled $1.58 billion, down 6% year over year. FITTLE’s revenues of $98 million remained flat year over year.
Sales revenues came in at $644 million, down 6.7% year over year. Services, maintenance and rental revenues tumbled 4.8% year over year to $962 million. Financing revenues of $46 million fell 9.8% year over year.
Operating Performance
Adjusted operating income amounted to $68 million, up more than 4.6% on a year-over-year basis. Adjusted operating margin reached 4.1%, up 40 basis points year over year.
Kay Balance Sheet and Cash Flow Figures
XRX exited the quarter with a cash and cash equivalent balance of $532 billion compared with $477 million at the prior-quarter end. The company’s operating cash flow and free cash flow were $124 million and $112 million, respectively, in the reported quarter.
2023 Guidance
Management expects 2023 revenue growth to be flat to down low single digits on a constant currency basis. Adjusted operating margin is anticipated to be between 5.5% and 6%. Free cash flow is forecast to be at least $600 million.
The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Earnings Snapshots
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share, which lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and jumped 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter. This was driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
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Xerox Holdings Corporation (XRX - Free Report) reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The earnings beat failed to impress investors as the stock lost 2.5% since the company’s earnings release on Oct 24.
Adjusted EPS of 46 cents surpassed the Zacks Consensus Estimate by 35.3% and increased more than 100% year over year. Total revenues of $1.65 billion lagged the consensus mark by 3.5% and decreased 5.7% year over year on a reported basis. Revenues declined 7.4% on a constant-currency basis.
Xerox Holdings’ shares have lost 15% over the past year compared with the 4.5% decline of the industry it belongs to.
Revenue Details
Post-sale revenues came in at $1.27 billion, down 7% from the prior-year quarter’s figure and missing our estimate of $1.3 billion. Equipment sales decreased 1% year over year to $386 million, falling short of our estimate of $418.6 million. Equipment sales and post-sale revenues dipped 9% and 2.1%, respectively, year over year on a constant currency basis.
The Print and Other segment’s revenues totaled $1.58 billion, down 6% year over year. FITTLE’s revenues of $98 million remained flat year over year.
Sales revenues came in at $644 million, down 6.7% year over year. Services, maintenance and rental revenues tumbled 4.8% year over year to $962 million. Financing revenues of $46 million fell 9.8% year over year.
Operating Performance
Adjusted operating income amounted to $68 million, up more than 4.6% on a year-over-year basis. Adjusted operating margin reached 4.1%, up 40 basis points year over year.
Kay Balance Sheet and Cash Flow Figures
XRX exited the quarter with a cash and cash equivalent balance of $532 billion compared with $477 million at the prior-quarter end. The company’s operating cash flow and free cash flow were $124 million and $112 million, respectively, in the reported quarter.
2023 Guidance
Management expects 2023 revenue growth to be flat to down low single digits on a constant currency basis. Adjusted operating margin is anticipated to be between 5.5% and 6%. Free cash flow is forecast to be at least $600 million.
The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Earnings Snapshots
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share, which lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and jumped 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter. This was driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
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