We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Xerox Holdings Stock Declines 4% Since Q3 Earnings Miss
Read MoreHide Full Article
Xerox Holdings Corporation’s (XRX - Free Report) stock has declined 4% since the company’s second-quarter 2024 results. This downward trajectory can be attributed to dismal quarterly performance and weak guidance.
Third-quarter adjusted EPS of 25 cents missed the Zacks Consensus Estimate by 52.8% and declined 45.7% year over year. Total revenues of $1.53 billion missed the consensus mark by 3.6% and decreased 7.5% year over year on a reported basis. Revenues declined 7.3% on a constant-currency (CC) basis.
Xerox lowered its 2024 revenue guidance from 5% to 6% decline to a decline of around 10% at constant currency. The adjusted operating margin expectation has been lowered from at least 6.5% to around 5%. The company now expects free cash flow to be $450 to $500 million compared with the previous anticipation of at least $550 million.
Xerox Holdings Corporation Price, Consensus and EPS Surprise
Post-sale revenues came in at $1.19 billion, down 6.1% year over year on a reported basis and 5.7% at cc, lagging our estimate of $1.3 billion. Equipment sales declined 12.2% year over year on a reported basis and at cc to $339 million, surpassing our estimate of $330.3 million.
The Print and Other segment’s revenues totaled $1.46 billion, down 7.5% year over year and lagging our estimate of $1.55 billion. Xerox Financial Services revenues totaled $88 million, down 10.2% year over year and lagging our estimate of $96.4 million.
Sales revenues totaled $588 million, down 8.7% year over year on a reported basis and 8.3% at cc. Services, maintenance and rental revenues totaled $902 million, down 6.2% year over year on a reported basis and 6.1% at cc. Financing revenues of $38 million decreased 17.4% year over year on a reported basis and 17.6% at cc.
XRX’s Operating Performance
Adjusted operating income came in at $85 million, up 17.6% on a year-over-year basis. Adjusted operating margin was 5.2%, up 110 basis points year over year.
XRX’s Key Balance Sheet and Cash Flow Figures
Xerox exited the quarter with a cash and cash equivalent balance of $521 billion compared with $485 million at the end of the prior quarter. The company’s operating cash flow and free cash flow were $116 million and $107 million, respectively, in the quarter.
XRX currently carries a Zacks Rank #5 (Strong Sell).
Omnicom (OMC - Free Report) reported impressive third-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.
Equifax (EFX - Free Report) reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing 5.1% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.
RSG’s earnings per share of $1.8 outpaced the Zacks Consensus Estimate by 11.7% and grew 17.5% from the year-ago quarter. Revenues of $4.1 billion missed the consensus mark by a slight margin, while it increased 6.5% on a year-over-year basis.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Xerox Holdings Stock Declines 4% Since Q3 Earnings Miss
Xerox Holdings Corporation’s (XRX - Free Report) stock has declined 4% since the company’s second-quarter 2024 results. This downward trajectory can be attributed to dismal quarterly performance and weak guidance.
See Zacks Earnings Calendar to stay ahead of market-making news.
Third-quarter adjusted EPS of 25 cents missed the Zacks Consensus Estimate by 52.8% and declined 45.7% year over year. Total revenues of $1.53 billion missed the consensus mark by 3.6% and decreased 7.5% year over year on a reported basis. Revenues declined 7.3% on a constant-currency (CC) basis.
Xerox lowered its 2024 revenue guidance from 5% to 6% decline to a decline of around 10% at constant currency. The adjusted operating margin expectation has been lowered from at least 6.5% to around 5%. The company now expects free cash flow to be $450 to $500 million compared with the previous anticipation of at least $550 million.
Xerox Holdings Corporation Price, Consensus and EPS Surprise
Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation Quote
Q3 Revenue Details for XRX
Post-sale revenues came in at $1.19 billion, down 6.1% year over year on a reported basis and 5.7% at cc, lagging our estimate of $1.3 billion. Equipment sales declined 12.2% year over year on a reported basis and at cc to $339 million, surpassing our estimate of $330.3 million.
The Print and Other segment’s revenues totaled $1.46 billion, down 7.5% year over year and lagging our estimate of $1.55 billion. Xerox Financial Services revenues totaled $88 million, down 10.2% year over year and lagging our estimate of $96.4 million.
Sales revenues totaled $588 million, down 8.7% year over year on a reported basis and 8.3% at cc. Services, maintenance and rental revenues totaled $902 million, down 6.2% year over year on a reported basis and 6.1% at cc. Financing revenues of $38 million decreased 17.4% year over year on a reported basis and 17.6% at cc.
XRX’s Operating Performance
Adjusted operating income came in at $85 million, up 17.6% on a year-over-year basis. Adjusted operating margin was 5.2%, up 110 basis points year over year.
XRX’s Key Balance Sheet and Cash Flow Figures
Xerox exited the quarter with a cash and cash equivalent balance of $521 billion compared with $485 million at the end of the prior quarter. The company’s operating cash flow and free cash flow were $116 million and $107 million, respectively, in the quarter.
XRX currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Omnicom (OMC - Free Report) reported impressive third-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.
Equifax (EFX - Free Report) reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing 5.1% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.
Republic Services, Inc. (RSG - Free Report) reported mixed third-quarter 2024 results.
RSG’s earnings per share of $1.8 outpaced the Zacks Consensus Estimate by 11.7% and grew 17.5% from the year-ago quarter. Revenues of $4.1 billion missed the consensus mark by a slight margin, while it increased 6.5% on a year-over-year basis.