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The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, delivering an earnings surprise of 9.6%, on average.
Expectations This Time Around
The Zacks Consensus Estimate for Xerox’s revenues in the to-be-reported quarter is pegged at $1.82 billion, indicating a decline of 5.9% from the year-ago actual figure. While equipment sales are expected to have been affected by continued supply chain disruptions, post-sale revenues are likely to have been negatively impacted as companies canceled their return-to-office plans with soaring COVID counts.
The consensus mark for earnings stands at 28 cents, indicating a 51.7% year-over-year decline. Incremental costs related to supply chain disruption, lower FUJIFILM Business Innovation royalty revenues and lower government subsidies are likely to have weighed on the bottom line in the quarter.
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 0.00% and Zacks Rank #5 (Strong Sell).
Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season:
Clean Harbors (CLH - Free Report) has an Earnings ESP of +7.20% and a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 50.5%, on average.
CLH has had a decent run on the bourses over the past year, with shares appreciating 13.9% against 11.3% decline of the industry it belongs to.
WEX (WEX - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #3. It has a trailing four-quarter earnings surprise of 8.6%, on average.
WEX’s shares have lost 23.4% over the past year compared with 18.3% decline of the industry it belongs to.
Booz Allen Hamilton (BAH - Free Report) has an Earnings ESP of +3.74% and a Zacks Rank #3. It has a trailing four-quarter earnings surprise of 12.7%, on average.
BAH’s shares have declined 12.5% over the past year compared with 7.5% decline of the industry it belongs to.
Image: Bigstock
What's in the Offing for Xerox (XRX) This Earnings Season?
Xerox Holdings Corporation’s (XRX - Free Report) will report fourth-quarter 2021 results on Jan 25, before the bell.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, delivering an earnings surprise of 9.6%, on average.
Expectations This Time Around
The Zacks Consensus Estimate for Xerox’s revenues in the to-be-reported quarter is pegged at $1.82 billion, indicating a decline of 5.9% from the year-ago actual figure. While equipment sales are expected to have been affected by continued supply chain disruptions, post-sale revenues are likely to have been negatively impacted as companies canceled their return-to-office plans with soaring COVID counts.
The consensus mark for earnings stands at 28 cents, indicating a 51.7% year-over-year decline. Incremental costs related to supply chain disruption, lower FUJIFILM Business Innovation royalty revenues and lower government subsidies are likely to have weighed on the bottom line in the quarter.
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 0.00% and Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Xerox Holdings Corporation Price and EPS Surprise
Xerox Holdings Corporation price-eps-surprise | Xerox Holdings Corporation Quote
Stocks That Warrant a Look
Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season:
Clean Harbors (CLH - Free Report) has an Earnings ESP of +7.20% and a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 50.5%, on average.
CLH has had a decent run on the bourses over the past year, with shares appreciating 13.9% against 11.3% decline of the industry it belongs to.
WEX (WEX - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #3. It has a trailing four-quarter earnings surprise of 8.6%, on average.
WEX’s shares have lost 23.4% over the past year compared with 18.3% decline of the industry it belongs to.
Booz Allen Hamilton (BAH - Free Report) has an Earnings ESP of +3.74% and a Zacks Rank #3. It has a trailing four-quarter earnings surprise of 12.7%, on average.
BAH’s shares have declined 12.5% over the past year compared with 7.5% decline of the industry it belongs to.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.