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Adjusted EPS of 19 cents missed the Zacks Consensus Estimate by 48.7% and declined 60.4% year over year. Total revenues of $1.8 billion lagged the consensus mark by 1.7% and decreased marginally year over year on a reported basis. Revenues increased 4.7% on a constant-currency basis.
The company’s shares have declined 22.7% over the past year compared with the 18.4% decline of the industry it belongs to.
Quarter Details
Print and Other segment revenues totaled $1.6 billion, up slightly year over year. Financing (FITTLE) segment’s revenues totaled $150 million, down 12.3% year over year.
Sales revenues totaled $690 million, up from $657 million reported in the year-ago quarter. Services, maintenance and rental revenues totaled $1 billion, down 3.4% year over year. Financing revenues of $51 million decreased 7.2% year over year.
Adjusted operating income came in at $65 million compared with $74 million in the year-ago quarter. Adjusted operating margin of 3.7% declined 50 basis points (bps) year over year.
Xerox exited the quarter with a cash and cash equivalent balance of $932 million compared with $1.2 billion at the end of the prior quarter. Long-term debt was $2.7 billion compared with $2.8 billion at the end of the previous quarter. The company’s operating cash outflow and free cash outflow were $8 million and $18 million, respectively, in the quarter.
Xerox Holdings Corporation Price, Consensus and EPS Surprise
Xerox lowered its 2022 guidance. It now expects its full-year 2022 revenues to be between $7 billion and $7.1 billion compared with the previous expectation of at least $7.1 billion. The midpoint ($7.05 billion) of the updated guided range is lower than the current Zacks Consensus Estimate of $7.1 billion. Free cash flow is now expected to be at least $125 million compared with the previous expectation of at least $400 million.
Recent Performance of Some of Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the Zacks Consensus Estimates.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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Xerox (XRX) Misses on Q3 Earnings, Lowers Revenue Guidance
Xerox Holdings Corporation (XRX - Free Report) reported lower-than-expected third-quarter 2022 results.
Adjusted EPS of 19 cents missed the Zacks Consensus Estimate by 48.7% and declined 60.4% year over year. Total revenues of $1.8 billion lagged the consensus mark by 1.7% and decreased marginally year over year on a reported basis. Revenues increased 4.7% on a constant-currency basis.
The company’s shares have declined 22.7% over the past year compared with the 18.4% decline of the industry it belongs to.
Quarter Details
Print and Other segment revenues totaled $1.6 billion, up slightly year over year. Financing (FITTLE) segment’s revenues totaled $150 million, down 12.3% year over year.
Sales revenues totaled $690 million, up from $657 million reported in the year-ago quarter. Services, maintenance and rental revenues totaled $1 billion, down 3.4% year over year. Financing revenues of $51 million decreased 7.2% year over year.
Adjusted operating income came in at $65 million compared with $74 million in the year-ago quarter. Adjusted operating margin of 3.7% declined 50 basis points (bps) year over year.
Xerox exited the quarter with a cash and cash equivalent balance of $932 million compared with $1.2 billion at the end of the prior quarter. Long-term debt was $2.7 billion compared with $2.8 billion at the end of the previous quarter. The company’s operating cash outflow and free cash outflow were $8 million and $18 million, respectively, in the quarter.
Xerox Holdings Corporation Price, Consensus and EPS Surprise
Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation Quote
2022 Guidance
Xerox lowered its 2022 guidance. It now expects its full-year 2022 revenues to be between $7 billion and $7.1 billion compared with the previous expectation of at least $7.1 billion. The midpoint ($7.05 billion) of the updated guided range is lower than the current Zacks Consensus Estimate of $7.1 billion. Free cash flow is now expected to be at least $125 million compared with the previous expectation of at least $400 million.
Xerox currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Some of Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the Zacks Consensus Estimates.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.