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Xerox (XRX) Q4 Earnings Surpass Estimates, Increase Y/Y
Xerox Holdings Corporation (XRX - Free Report) reported better-than-expected fourth-quarter 2022 results.
Adjusted EPS of 89 cents beat the Zacks Consensus Estimate by 64.8% and increased more than 100% year over year. Total revenues of $1.9 billion surpassed the consensus mark by 4% and increased 9.2% year over year on a reported basis. Revenues increased 13.9% on a constant-currency basis.
The company’s shares have gained 18.7% over the past three months compared with the 11.1% rally of the industry it belongs to.
Print and Other segment revenues totaled $1.8 billion, up 11.1% year over year. The Financing (FITTLE) segment’s revenues totaled $151 million, down 9.6% year over year.
Sales revenues totaled $851 million, up from $653 million reported in the year-ago quarter. Services, maintenance and rental revenues totaled $1 billion, down 2.8% year over year. Financing revenues of $51 million decreased 7.3% year over year.
Adjusted operating income was $178 million compared with $86 million in the year-ago quarter. Adjusted operating margin of 9.2% improved 440 basis points year over year.
Xerox exited the quarter with a cash and cash equivalent balance of $1.5 billion compared with $932 million at the end of the prior quarter. The company’s operating cash outflow and free cash outflow were $186 million and $168 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
Xerox expects 2023 revenue growth to be flat to down low-single digits on a constant-currency basis, adjusted operating margin of at least 4.7% and free cash flow of at least $500 million.
Xerox currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector can consider stocks like Trane Technologies (TT - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , which are going to report fourth-quarter 2022 numbers soon.
Trane Technologies is set to release results on Feb 2. The stock has an expected earnings growth rate of 17.9% for 2022.
Trane Technologies has a long-term expected earnings growth of 11%.
Waste Management is set to report quarterly numbers on Feb 1. The stock has an expected earnings growth rate of 17.8% for 2022.
Waste Management has a long-term expected earnings growth of 12.6%.
Republic Services is set to report results on Feb 15. The stock has an expected earnings growth rate of 15.6% for the current year.
Republic Services has a long-term expected earnings growth of 11.3%.