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Xerox (XRX) Reports Q3 Earnings: What Key Metrics Have to Say

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Xerox Holdings Corporation (XRX - Free Report) reported $1.53 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 7.5%. EPS of $0.25 for the same period compares to $0.46 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.59 billion, representing a surprise of -3.64%. The company delivered an EPS surprise of -52.83%, with the consensus EPS estimate being $0.53.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Xerox performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenues- Financing: $38 million versus $39.40 million estimated by three analysts on average.
  • Revenues- Services, maintenance and rentals: $902 million versus the three-analyst average estimate of $958.48 million. The reported number represents a year-over-year change of -6.2%.
  • Revenues- Sales: $588 million versus the three-analyst average estimate of $587.75 million. The reported number represents a year-over-year change of -8.7%.
  • Revenue- Supplies, paper and other sales: $249 million compared to the $234.74 million average estimate based on three analysts. The reported number represents a change of -3.5% year over year.
  • Revenue- Equipment sales: $339 million versus $353.01 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -12.2% change.
  • Revenue- Equipment Sales- Other: $5 million versus the two-analyst average estimate of $2.95 million. The reported number represents a year-over-year change of +66.7%.
  • Revenue- Equipment Sales- High-end: $57 million versus the two-analyst average estimate of $61.56 million. The reported number represents a year-over-year change of -14.9%.
  • Revenue- Equipment Sales- Entry: $53 million versus $49.56 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -5.4% change.
  • Revenue- Post sale revenue: $1.19 billion versus the two-analyst average estimate of $1.24 billion. The reported number represents a year-over-year change of -6.1%.
  • Revenue- Equipment Sales- Mid-range: $224 million versus $244.13 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -13.9% change.
View all Key Company Metrics for Xerox here>>>

Shares of Xerox have returned -1% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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