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Xerox (XRX) to Report Q4 Earnings: What's in the Offing?

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Xerox Holdings Corporation’s (XRX - Free Report) will report fourth-quarter 2020 results on Jan 26, before the bell.

The company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, the average beat being 24.3%.

Expectations This Time Around

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.89 billion, indicating a year-over-year decline of 22.5%. Weak equipment and post-sale revenues are expected to have hurt the top line. In the third quarter of 2020, revenues of $2.44 billion fell 19.7% on a year-over-year basis.

The consensus mark for earnings stands at 60 cents, indicating a 54.9% year-over-year slump. Lower revenues and price promotion investments are likely to have weighed on the bottom line. In the fourth quarter of 2020, adjusted EPS of 48 cents decreased 55.6%, year over year.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Xerox this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Xerox has an Earnings ESP of +1.67% and Zacks Rank #4 (Sell).

Xerox Corporation Price and EPS Surprise

Xerox Corporation Price and EPS Surprise

Xerox Corporation price-eps-surprise | Xerox Corporation Quote

Stocks to Consider

Here are a few stocks that investors can consider, as our model shows that these have the right combination of elements to beat on earnings this season.

ManpowerGroup (MAN - Free Report) , with an Earnings ESP of +6.2% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aptiv (APTV - Free Report) , with an Earnings ESP of +1.66% and a Zacks Rank #2.

Equifax (EFX - Free Report) , with an Earnings ESP of +1.44% and a Zacks Rank of 3.

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