Xerox Holdings Stock Declines 4% Since Q3 Earnings Miss

Xerox Holdings Corporation’s XRX 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 QuoteQ3 Revenue Details for XRXPost-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 PerformanceAdjusted 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 FiguresXerox 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 SnapshotsOmnicom OMC 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 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 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.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Omnicom Group Inc. (OMC): Free Stock Analysis Report Xerox Holdings Corporation (XRX): Free Stock Analysis Report Equifax, Inc. (EFX): Free Stock Analysis Report Republic Services, Inc. (RSG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks