We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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 (XRX) Stock Loses 9% Since Q2 Earnings Miss
Read MoreHide Full Article
Xerox Holdings Corporation’s (XRX - Free Report) stock has declined 8.7% since the company’s second-quarter 2024 results. This downward trajectory can be attributed to dismal quarterly performance and weak guidance.
Second quarter adjusted EPS of 29 cents missed the Zacks Consensus Estimate by 37% and declined 34% year over year. Total revenues of $1.58 billion missed the consensus mark by 3.1% and decreased 10% year over year on a reported basis. Revenues declined 9.6% on a constant-currency (CC) basis.
Xerox lowered its 2024 revenue guidance from a decline of 3% to 5% to a decline of 5% to 6% at constant currency. Adjusted operating margin expectation has been lowered from at least 7.5% to at least 6.5%. The company now expects free cash flow to be at least $550 million compared with the previous anticipation of at least $600 million.
Xerox Holdings Corporation Price, Consensus and EPS Surprise
Post-sale revenues came in at $1.22 billion, down 8.4% year over year on a reported basis and 7.9% on a constant currency (cc) basis, lagging our estimate of $1.24 billion. Equipment sales declined 15.2% year over year on a reported basis and 14.9% at cc to $356 million, lagging our estimate of $391.7 million.
Print and Other segment’s revenues totaled $1.51 billion, down 9.9% year over year, lagging our estimate of $1.55 billion. Xerox Financial Services revenues totaled $89 million, down 11.9% year over year, and lagged our estimate of $99.9 million.
Sales revenues totaled $611 million, down 12.2% year over year on a reported basis and 12% at cc. Services, maintenance and rental revenues totaled $929 million, down 7.9% year over year on a reported basis and 7.3% at cc. Financing revenues of $38 million decreased 22.4% year over year on a reported basis and 20.2% at cc.
Operating Performance
Adjusted operating income came in at $85 million, down 20.6% on a year-over-year basis. Adjusted operating margin came in at 5.4%, down 70 basis points year over year.
Kay Balance Sheet and Cash Flow Figures
Xerox exited the quarter with a cash and cash equivalent balance of $485 billion compared with $685 million at the end of the prior quarter. The company’s operating cash flow and free cash flow were $123 million and $115 million, respectively, in the quarter.
XRX currently carries a Zacks Rank #5 (Strong Sell).
Omnicom (OMC - Free Report) reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.
EFX’s adjusted earnings were $1.82 per share, beating the consensus estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.
ManpowerGroup (MAN - Free Report) reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Xerox Holdings (XRX) Stock Loses 9% Since Q2 Earnings Miss
Xerox Holdings Corporation’s (XRX - Free Report) stock has declined 8.7% since the company’s second-quarter 2024 results. This downward trajectory can be attributed to dismal quarterly performance and weak guidance.
Second quarter adjusted EPS of 29 cents missed the Zacks Consensus Estimate by 37% and declined 34% year over year. Total revenues of $1.58 billion missed the consensus mark by 3.1% and decreased 10% year over year on a reported basis. Revenues declined 9.6% on a constant-currency (CC) basis.
Xerox lowered its 2024 revenue guidance from a decline of 3% to 5% to a decline of 5% to 6% at constant currency. Adjusted operating margin expectation has been lowered from at least 7.5% to at least 6.5%. The company now expects free cash flow to be at least $550 million compared with the previous anticipation of at least $600 million.
Xerox Holdings Corporation Price, Consensus and EPS Surprise
Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation Quote
Q2 Revenue Details
Post-sale revenues came in at $1.22 billion, down 8.4% year over year on a reported basis and 7.9% on a constant currency (cc) basis, lagging our estimate of $1.24 billion. Equipment sales declined 15.2% year over year on a reported basis and 14.9% at cc to $356 million, lagging our estimate of $391.7 million.
Print and Other segment’s revenues totaled $1.51 billion, down 9.9% year over year, lagging our estimate of $1.55 billion. Xerox Financial Services revenues totaled $89 million, down 11.9% year over year, and lagged our estimate of $99.9 million.
Sales revenues totaled $611 million, down 12.2% year over year on a reported basis and 12% at cc. Services, maintenance and rental revenues totaled $929 million, down 7.9% year over year on a reported basis and 7.3% at cc. Financing revenues of $38 million decreased 22.4% year over year on a reported basis and 20.2% at cc.
Operating Performance
Adjusted operating income came in at $85 million, down 20.6% on a year-over-year basis. Adjusted operating margin came in at 5.4%, down 70 basis points year over year.
Kay Balance Sheet and Cash Flow Figures
Xerox exited the quarter with a cash and cash equivalent balance of $485 billion compared with $685 million at the end of the prior quarter. The company’s operating cash flow and free cash flow were $123 million and $115 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 second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2024 results.
EFX’s adjusted earnings were $1.82 per share, beating the consensus estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.
ManpowerGroup (MAN - Free Report) reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year.