XRX Earnings Prediction
The chart below shows how XRX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, XRX sees a +3.53% change in stock price 10 days leading up to the earnings, and a -2.31% change 10 days following the report. On the earnings day itself, the stock moves by -3.41%. This data can give you a slight idea of what to expect for the next quarter's release.
XRX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.61B
-8.61%
5.56%
Gross Margin
28.46%
-13.68%
-10.33%
Operating Margin
2.17%
-55.44%
-52.62%
Net Margin
-1.30%
-60.49%
-98.35%
EPS
-0.19
-61.22%
-98.05%
No Data Available
XRX Earnings Analysis
Xerox Holdings Corp Corporation (XRX.O) Earnings Conference Call
Positive
Revenue and Operating Income: Revenue of $6.2 billion for the year, with adjusted operating income margin of 4.9%, demonstrating improved execution despite a decline in total revenue.
Cost Savings Achievement: Achieved $200 million in gross reinvention cost savings, contributing to a nearly 12% decline in total company operating expenses, excluding one-time costs.
Sales Force Productivity Improvement: Sales force productivity improved by 20% sequentially in Q4, indicating effective organizational redesign and operational efficiencies.
Entry Equipment Growth: Entry equipment installations grew 28% year over year in Q4, reflecting strong demand and positioning for future revenue growth.
IT Solutions Market Expansion: The acquisition of IT Savvy is expected to enhance Xerox's IT Solutions business, targeting a total addressable market estimated to be around 10 times the size of print.
Negative
Revenue Decline Analysis: Revenue of $6.2 billion decreased 9.7% in actual currency and 9.5% in constant currency, with a decline of 10.2% in constant currency when excluding IT Savvy results.
Earnings Pressure Indicated: Adjusted EPS was $0.97, which is $0.85 lower year over year, indicating significant earnings pressure.
Free Cash Flow Decline: Free cash flow generated was $467 million, down $182 million year over year, reflecting reduced cash generation capabilities.
Operating Income Margin Decline: Adjusted operating income margin of 4.9% was lower year over year by 70 basis points, highlighting ongoing profitability challenges.
Organic Revenue Decline: Core organic revenue declined around 4% in 2024, driven by modest market share losses in equipment and lower page volumes.
XRX FAQs
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XRX Earning Call Sentiment
Earnings call transcript: Xerox Q4 2024 misses expectations, stock drops
XRX.O
0%Positive
The earnings call reveals several negative indicators: declining revenue and EPS, reduced free cash flow guidance, and challenges in maintaining gross margins despite cost-saving efforts. The Q&A section highlights potential headwinds from ongoing reinvention actions and unclear management responses on future impacts. Although there is potential growth from the IT Savvy acquisition, the overall sentiment remains negative due to financial underperformance and uncertainties. Given the market cap of approximately $1.5 billion, the stock is likely to react negatively in the range of -2% to -8% over the next two weeks.
