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Xerox (XRX) Gears Up for Q3 Earnings: What's in the Cards?

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Xerox Holdings Corporation (XRX - Free Report) will report its third-quarter 2022 results on Oct 25, before the bell.

The Zacks Consensus Estimate for XRX’s earnings in the to-be-reported quarter has been revised upward by 7.9% in the past 60 days. The company’s earnings surprise history has not been impressive. It has a trailing four-quarter average negative earnings surprise of 39.65%.

Expectations This Time Around

The Zacks Consensus Estimate for Xerox’s revenues in the to-be-reported quarter is pegged at $1.78 billion, indicating an increase of 1.3% from the year-ago figure. The decline in equipment sales due to continued supply chain disruptions is expected to have negatively impacted the top line in the quarter.

The consensus mark for earnings stands at 44 cents per share, indicating an 8.3% year-over-year decline. Supply-chain constraints and broad-based inflationary pressure 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 -6.82% and Zacks Rank #3.

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 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 their earnings this season:

Gartner, Inc. (IT - Free Report)  has an Earnings ESP of +1.89% and a Zacks Rank #3.

Gartner has an expected revenue growth rate of 13.7% and 10.3% for the current and next year, respectively. IT has a trailing four-quarter earnings surprise of 25.3%, on average.

Trane Technologies plc (TT - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank of 3.

Trane Technologies has an expected earnings growth rate of 16.3% for the current year. TT has a trailing four-quarter earnings surprise of 3.9%, on average.

Riot Blockchain (RIOT - Free Report)  has an Earnings ESP of +125.49% and a Zacks Rank #3.

Riot has an expected revenue growth rate of 41.2% for the current year and 69.1% for next year.  

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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