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Xerox (XRX) Reports Loss in Q1, Revenues Surpass Estimates
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Xerox Holdings Corporation’s (XRX - Free Report) first-quarter 2022 adjusted loss per share came in at 12 cents against the Zacks Consensus Estimate of earnings of 12 cents per share and the year-ago earnings of 22 cents per share.
Total revenues of $1.67 billion surpassed the consensus mark by a slight margin and decreased 2.5% year over year on a reported basis and slightly on a constant-currency basis.
The company’s shares have declined 18.4% over the past year, compared with 9.9% decline of the industry it belongs to.
Quarter Details
Sales revenues totaled $592 million, down 1.7% year over year. Services, maintenance and rentals revenues totaled $1.02 billion, down 2.9% year over year. Financing revenue of $55 million decreased 2.9% year over year.
Adjusted operating loss came in at $3 million against adjusted operating income of $89 million in the year-ago quarter. Selling, administrative and general expenses, as a percentage of revenues, increased 108 bps year over year to 27.3%. Research, development and engineering expenses, as a percentage of revenues, came in at 4.7%, up from the year-ago quarter’s 4.3%.
Xerox exited the quarter with cash and cash equivalent balance of $1.7 billion compared with $1.8 billion at the end of the prior quarter. Long-term debt was $2.8 billion compared with $3.6 billion at the end of the previous quarter. The company’s operating cash flow and free cash flow were a respective $66 million and $50 million in the quarter.
2022 Guidance
Xerox expects full-year 2022 revenues to be at least $7.1 billion, lower than the current Zacks Consensus Estimate of $7.13 billion. Free cash flow is expected to be at least $400 million.
Xerox Holdings Corporation Price, Consensus and EPS Surprise
Some other stocks that investors can consider are Cross Country Healthcare, Inc. (CCRN - Free Report) and FactSet Research Systems Inc. (FDS - Free Report) .
Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.
Cross Country Healthcare’s shares have surged 63.7% in the past year. CCRN sports a Zacks Rank #1.
FactSet has an expected earnings growth rate of 16.1% for the current year. FDS has a trailing four-quarter earnings surprise of 6.1%, on average.
FactSet shares have surged 35% in the past year. FDS has a long-term earnings growth of 10%. FDS carries a Zacks Rank #2.
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Xerox (XRX) Reports Loss in Q1, Revenues Surpass Estimates
Xerox Holdings Corporation’s (XRX - Free Report) first-quarter 2022 adjusted loss per share came in at 12 cents against the Zacks Consensus Estimate of earnings of 12 cents per share and the year-ago earnings of 22 cents per share.
Total revenues of $1.67 billion surpassed the consensus mark by a slight margin and decreased 2.5% year over year on a reported basis and slightly on a constant-currency basis.
The company’s shares have declined 18.4% over the past year, compared with 9.9% decline of the industry it belongs to.
Quarter Details
Sales revenues totaled $592 million, down 1.7% year over year. Services, maintenance and rentals revenues totaled $1.02 billion, down 2.9% year over year. Financing revenue of $55 million decreased 2.9% year over year.
Adjusted operating loss came in at $3 million against adjusted operating income of $89 million in the year-ago quarter. Selling, administrative and general expenses, as a percentage of revenues, increased 108 bps year over year to 27.3%. Research, development and engineering expenses, as a percentage of revenues, came in at 4.7%, up from the year-ago quarter’s 4.3%.
Xerox exited the quarter with cash and cash equivalent balance of $1.7 billion compared with $1.8 billion at the end of the prior quarter. Long-term debt was $2.8 billion compared with $3.6 billion at the end of the previous quarter. The company’s operating cash flow and free cash flow were a respective $66 million and $50 million in the quarter.
2022 Guidance
Xerox expects full-year 2022 revenues to be at least $7.1 billion, lower than the current Zacks Consensus Estimate of $7.13 billion. Free cash flow is expected to be at least $400 million.
Xerox Holdings Corporation Price, Consensus and EPS Surprise
Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation Quote
Zacks Rank and Other Stocks to Consider
Xerox currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other stocks that investors can consider are Cross Country Healthcare, Inc. (CCRN - Free Report) and FactSet Research Systems Inc. (FDS - Free Report) .
Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.
Cross Country Healthcare’s shares have surged 63.7% in the past year. CCRN sports a Zacks Rank #1.
FactSet has an expected earnings growth rate of 16.1% for the current year. FDS has a trailing four-quarter earnings surprise of 6.1%, on average.
FactSet shares have surged 35% in the past year. FDS has a long-term earnings growth of 10%. FDS carries a Zacks Rank #2.