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Xerox (XRX) to Report Q1 Earnings: What's in the Offing?

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Xerox Holdings Corporation’s (XRX - Free Report) shares have slumped 50.4% over the past year compared with the 24.1% fall of the industry it belongs to. The company will report first-quarter 2020 results on Apr 28, before the bell.

Expectations This Time Around

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.75 billion, indicating a year-over-year decline of 20.5%. Weak equipment and post-sale revenues are expected to have hurt the top line. In the fourth quarter of 2019, revenues of $2.44 billion fell 2.2% on a year-over-year basis.

The consensus mark for earnings stands at 0.44 cents, indicating a 51.7% year-over-year slump. Lower revenues and restructuring costs are likely to have weighed on the bottom line. In the fourth quarter of 2019, adjusted EPS of $1.33 increased 41.5%, year over year.

Xerox Corporation EPS Diluted (TTM)

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Xerox this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Xerox has an Earnings ESP of 0.00% and currently carries a Zacks Rank #3.

Stocks to Consider

Here are a few stocks that investors can consider, as our model shows that these have the right combination of elements to beat on first-quarter 2020 earnings.

Spotify (SPOT - Free Report) has an Earnings ESP of +26.78% and currently holds a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Huron Consulting (HURN - Free Report) has an Earnings ESP of +3.20% and carries a Zacks Rank #2 currently.

ICF International (ICFI - Free Report) has an Earnings ESP of +3.08% and carries a Zacks Rank of 3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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