Xerox Holdings Corporation ( XRX Quick Quote XRX - Free Report) reported better-than-expected first-quarter 2023 results.
Adjusted EPS of 49 cents beat the Zacks Consensus Estimate and exceeded the year-ago figure, both by more than 100%. The bottom line surpassed our estimate by more than 100% as well.
Total revenues of $1.7 billion surpassed the consensus mark by a slight margin and increased 2.8% year over year on a reported basis. The top line surpassed our estimate by 1.6%. Revenues increased 5.5% on a constant-currency basis.
Demand for the company’s equipment and services remained in good shape in the quarter, benefiting the top line, despite unfavorable macroeconomic situations. The bottom-line growth was driven by a flexible cost base and operational efficiency.
Management stated that for 2023, Xerox remains highly focused on three strategic priorities, client success, profitability, and shareholder returns.
Xerox’s shares have declined 22.2% over the past year compared with the 2.7% fall of the
industry it belongs to. Quarter Details
Print and Other segment’s revenues totaled $1.6 billion, up 4.1% year over year. The Financing segment’s revenues totaled $154 million, down 2.5% year over year.
Sales revenues totaled $659 million, up from $592 million reported in the year-ago quarter. Equipment Sales revenues came in at $391 million, up from $314 million reported in the year-ago quarter. Services, maintenance and rental revenues totaled $1 billion, down 1.9% year over year. Financing revenues of $52 million decreased 1.9% year over year.
Adjusted operating income came in at $118 million against a loss of $3 million in the year-ago quarter. Adjusted operating margin came in at 6.9%.
Xerox exited the quarter with a cash and cash equivalent balance of $591 million compared with $1 billion at the end of the prior quarter. The company’s operating cash flow and free cash flow were $78 million and $70 million, respectively, in the quarter.
Xerox expects its 2023 revenue growth to be flat to down low-single-digits on a constant currency basis, adjusted operating margin to be between 5% and 5.5%, and free cash flow of at least $500 million.
The company currently carries a Zacks Rank #3 (Hold).
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. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Recent Earnings Snapshots of Some Service Providers Omnicom ( OMC Quick Quote OMC - Free Report) reported better-than-expected first-quarter 2023 results.
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Equifax ( EFX Quick Quote EFX - Free Report) also reported a beat on both counts in its first-quarter 2023 results.
EFX’s adjusted earnings came in at $1.43, beating the consensus mark by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.
ManpowerGroup ( MAN Quick Quote MAN - Free Report) reported lower-than-expected first-quarter 2023 results.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.