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Xerox's (XRX) Earnings Beat Estimates in Q2, Decrease Y/Y
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Xerox Holdings Corporation (XRX - Free Report) reported mixed second-quarter 2020 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings per share of 15 cents beat the consensus mark by 25% and declined year over year. Total revenues of $1.47 billion missed the consensus mark by 5.1% but declined year over year. The coronavirus pandemic had a significant negative impact on the company’s quarterly results.
Revenues in Detail
Sales revenues totaled $460 million, down 42.5% year over year. Services, maintenance and rentals revenues totaled $949 million, down 32.3% year over year. Financing revenues of $56 million declined 8.2%.
Operating Performance
Adjusted operating profit of $62 million declined 77.9% year over year. Adjusted operating margin shrunk 820 basis points (bps) year over year to 4.2%.
Selling, administrative and general expenses, as a percentage of revenues, increased to 29.1% from the 22.8% reported in the year-ago quarter. Research, development and engineering expenses, as a percentage of revenues, came in at 5.2%, up from the year-ago quarter’s 3.9%.
Xerox Corporation Price, Consensus and EPS Surprise
Xerox exited the second quarter with cash, cash equivalents and restricted cash balance of $2.3 billion. Long-term debt was $2.2 billion at the end of the quarter.
The company generated $34 million of cash from continuous operations and free cash flow was $15 million.
Xerox currently carries a Zacks Rank #5 (Strong Sell).
Equifax Inc. (EFX - Free Report) reported second-quarter 2020 adjusted earnings of $1.60 per share that beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. Revenues of $982.8 million outpaced the consensus estimate by 6.4% and improved 12% year over year on a reported basis. The stock currently carries a Zacks Rank #3 (Hold).
ManpowerGroup Inc. (MAN - Free Report) reported mixed second-quarter 2020 earnings of 18 cents per share, beating the consensus mark by 38.5% but declining more than 100% year over year. Revenues of $3.74 billion missed the consensus mark by 1.5% and declined 30.4% year over year. The stock currently carries a Zacks Rank #3.
IHS Markit Ltd. recorded second-quarter fiscal 2020 adjusted earnings per share of 69 cents that surpassed the consensus estimate by 6.2% but decreased 3% on a year-over-year basis. Total revenues came in at $1.03 billion, missing the consensus mark by 2.1% and declining 10% from the year-ago quarter. The stock currently carries a Zacks Rank #3.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Xerox's (XRX) Earnings Beat Estimates in Q2, Decrease Y/Y
Xerox Holdings Corporation (XRX - Free Report) reported mixed second-quarter 2020 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings per share of 15 cents beat the consensus mark by 25% and declined year over year. Total revenues of $1.47 billion missed the consensus mark by 5.1% but declined year over year. The coronavirus pandemic had a significant negative impact on the company’s quarterly results.
Revenues in Detail
Sales revenues totaled $460 million, down 42.5% year over year. Services, maintenance and rentals revenues totaled $949 million, down 32.3% year over year. Financing revenues of $56 million declined 8.2%.
Operating Performance
Adjusted operating profit of $62 million declined 77.9% year over year. Adjusted operating margin shrunk 820 basis points (bps) year over year to 4.2%.
Selling, administrative and general expenses, as a percentage of revenues, increased to 29.1% from the 22.8% reported in the year-ago quarter. Research, development and engineering expenses, as a percentage of revenues, came in at 5.2%, up from the year-ago quarter’s 3.9%.
Xerox Corporation Price, Consensus and EPS Surprise
Xerox Corporation price-consensus-eps-surprise-chart | Xerox Corporation Quote
Balance Sheet and Cash Flow
Xerox exited the second quarter with cash, cash equivalents and restricted cash balance of $2.3 billion. Long-term debt was $2.2 billion at the end of the quarter.
The company generated $34 million of cash from continuous operations and free cash flow was $15 million.
Xerox currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Services Companies
Equifax Inc. (EFX - Free Report) reported second-quarter 2020 adjusted earnings of $1.60 per share that beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. Revenues of $982.8 million outpaced the consensus estimate by 6.4% and improved 12% year over year on a reported basis. The stock currently carries a Zacks Rank #3 (Hold).
ManpowerGroup Inc. (MAN - Free Report) reported mixed second-quarter 2020 earnings of 18 cents per share, beating the consensus mark by 38.5% but declining more than 100% year over year. Revenues of $3.74 billion missed the consensus mark by 1.5% and declined 30.4% year over year. The stock currently carries a Zacks Rank #3.
IHS Markit Ltd. recorded second-quarter fiscal 2020 adjusted earnings per share of 69 cents that surpassed the consensus estimate by 6.2% but decreased 3% on a year-over-year basis. Total revenues came in at $1.03 billion, missing the consensus mark by 2.1% and declining 10% from the year-ago quarter. The stock currently carries a Zacks Rank #3.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>