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Xerox Holdings Corporation (XRX - Free Report) reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The earnings beat failed to impress investors as the stock lost 2.5% since the company’s earnings release on Oct 24.
Adjusted EPS of 46 cents surpassed the Zacks Consensus Estimate by 35.3% and increased more than 100% year over year. Total revenues of $1.65 billion lagged the consensus mark by 3.5% and decreased 5.7% year over year on a reported basis. Revenues declined 7.4% on a constant-currency basis.
Xerox Holdings’ shares have lost 15% over the past year compared with the 4.5% decline of the industry it belongs to.
Revenue Details
Post-sale revenues came in at $1.27 billion, down 7% from the prior-year quarter’s figure and missing our estimate of $1.3 billion. Equipment sales decreased 1% year over year to $386 million, falling short of our estimate of $418.6 million. Equipment sales and post-sale revenues dipped 9% and 2.1%, respectively, year over year on a constant currency basis.
The Print and Other segment’s revenues totaled $1.58 billion, down 6% year over year. FITTLE’s revenues of $98 million remained flat year over year.
Sales revenues came in at $644 million, down 6.7% year over year. Services, maintenance and rental revenues tumbled 4.8% year over year to $962 million. Financing revenues of $46 million fell 9.8% year over year.
Xerox Holdings Corporation Price, Consensus and EPS Surprise
Adjusted operating income amounted to $68 million, up more than 4.6% on a year-over-year basis. Adjusted operating margin reached 4.1%, up 40 basis points year over year.
Kay Balance Sheet and Cash Flow Figures
XRX exited the quarter with a cash and cash equivalent balance of $532 billion compared with $477 million at the prior-quarter end. The company’s operating cash flow and free cash flow were $124 million and $112 million, respectively, in the reported quarter.
2023 Guidance
Management expects 2023 revenue growth to be flat to down low single digits on a constant currency basis. Adjusted operating margin is anticipated to be between 5.5% and 6%. Free cash flow is forecast to be at least $600 million.
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share, which lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and jumped 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter. This was driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
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Xerox Holdings (XRX) Stock Falls 2.5% Despite Q3 Earnings Beat
Xerox Holdings Corporation (XRX - Free Report) reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The earnings beat failed to impress investors as the stock lost 2.5% since the company’s earnings release on Oct 24.
Adjusted EPS of 46 cents surpassed the Zacks Consensus Estimate by 35.3% and increased more than 100% year over year. Total revenues of $1.65 billion lagged the consensus mark by 3.5% and decreased 5.7% year over year on a reported basis. Revenues declined 7.4% on a constant-currency basis.
Xerox Holdings’ shares have lost 15% over the past year compared with the 4.5% decline of the industry it belongs to.
Revenue Details
Post-sale revenues came in at $1.27 billion, down 7% from the prior-year quarter’s figure and missing our estimate of $1.3 billion. Equipment sales decreased 1% year over year to $386 million, falling short of our estimate of $418.6 million. Equipment sales and post-sale revenues dipped 9% and 2.1%, respectively, year over year on a constant currency basis.
The Print and Other segment’s revenues totaled $1.58 billion, down 6% year over year. FITTLE’s revenues of $98 million remained flat year over year.
Sales revenues came in at $644 million, down 6.7% year over year. Services, maintenance and rental revenues tumbled 4.8% year over year to $962 million. Financing revenues of $46 million fell 9.8% year over year.
Xerox Holdings Corporation Price, Consensus and EPS Surprise
Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation Quote
Operating Performance
Adjusted operating income amounted to $68 million, up more than 4.6% on a year-over-year basis. Adjusted operating margin reached 4.1%, up 40 basis points year over year.
Kay Balance Sheet and Cash Flow Figures
XRX exited the quarter with a cash and cash equivalent balance of $532 billion compared with $477 million at the prior-quarter end. The company’s operating cash flow and free cash flow were $124 million and $112 million, respectively, in the reported quarter.
2023 Guidance
Management expects 2023 revenue growth to be flat to down low single digits on a constant currency basis. Adjusted operating margin is anticipated to be between 5.5% and 6%. Free cash flow is forecast to be at least $600 million.
The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Earnings Snapshots
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share, which lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and jumped 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter. This was driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.