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Xerox (XRX) Reports Loss in Q1, Revenues Surpass Estimates

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Xerox Holdings Corporation’s XRX first-quarter 2022 adjusted loss per share came in at 12 cents against the Zacks Consensus Estimate of earnings of 12 cents per share and the year-ago earnings of 22 cents per share.

Total revenues of $1.67 billion surpassed the consensus mark by a slight margin and decreased 2.5% year over year on a reported basis and slightly on a constant-currency basis.

The company’s shares have declined 18.4% over the past year, compared with 9.9% decline of the industry it belongs to.

Quarter Details

Sales revenues totaled $592 million, down 1.7% year over year. Services, maintenance and rentals revenues totaled $1.02 billion, down 2.9% year over year. Financing revenue of $55 million decreased 2.9% year over year.

Adjusted operating loss came in at $3 million against adjusted operating income of $89 million in the year-ago quarter. Selling, administrative and general expenses, as a percentage of revenues, increased 108 bps year over year to 27.3%. Research, development and engineering expenses, as a percentage of revenues, came in at 4.7%, up from the year-ago quarter’s 4.3%.

Xerox exited the quarter with cash and cash equivalent balance of $1.7 billion compared with $1.8 billion at the end of the prior quarter. Long-term debt was $2.8 billion compared with $3.6 billion at the end of the previous quarter. The company’s operating cash flow and free cash flow were a respective $66 million and $50 million in the quarter.

2022 Guidance

Xerox expects full-year 2022 revenues to be at least $7.1 billion, lower than the current Zacks Consensus Estimate of $7.13 billion. Free cash flow is expected to be at least $400 million.

Xerox Holdings Corporation Price, Consensus and EPS Surprise

Xerox Holdings Corporation Price, Consensus and EPS Surprise
Xerox Holdings Corporation Price, Consensus and EPS Surprise

Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation Quote

Zacks Rank and Other Stocks to Consider

Xerox currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other stocks that investors can consider are Cross Country Healthcare, Inc. CCRN and FactSet Research Systems Inc. FDS.

Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.

Cross Country Healthcare’s shares have surged 63.7% in the past year. CCRN sports a Zacks Rank #1.

FactSet has an expected earnings growth rate of 16.1% for the current year. FDS has a trailing four-quarter earnings surprise of 6.1%, on average.

FactSet shares have surged 35% in the past year. FDS has a long-term earnings growth of 10%. FDS carries a Zacks Rank #2.


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