Xerox's (XRX) Q2 Earnings Surpass Estimates, Decline YoY

Xerox Holdings Corporation XRX reported better-than-expected second-quarter 2022 results.

Adjusted EPS of 13 cents beat the Zacks Consensus Estimate by 8.3% but declined 72.3% year over year. Total revenues of $1.8 billion surpassed the consensus mark by 1.2% but decreased 2.6% year over year on a reported basis. Revenues increased 1.1% on a constant-currency basis.

The company’s shares have declined 37.1% over the past year compared with a 14.2% decline in the industry it belongs to.

Quarter Details

Print and Other segment revenues totaled $1.6 billion, down 2.3% year over year. Financing (FITTLE) segment revenues totaled $151 million, down 14.7% year over year.

Sales revenues totaled $667 million, down from $670 million reported in the year-ago quarter. Services, maintenance and rentals revenues totaled $1 billion, down 3.7% year over year. Financing revenues of $55 million decreased 7.1% year over year.

Adjusted operating income came in at $35 million compared with adjusted operating income of $126 million in the year-ago quarter. Adjusted operating margin of 2% declined 500 basis points (bps) year over year.

Xerox exited the quarter with cash and cash equivalent balance of $1.2 billion compared with $1.7 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 $85 million and $98 million, respectively, in the quarter.

2022 Guidance

Xerox expects its full-year 2022 revenues to be at least $7.1 billion, higher than the current Zacks Consensus Estimate of $7.05 billion. Free cash flow is expected to be at least $400 million.

Xerox currently carries a Zacks Rank #5 (Strong Sell).

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

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

Recent Performance of Some Other Business Services Companies

Equifax EFX reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.

EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.

IQVIA Holdings IQV reported solid second-quarter 2022 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.

IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.

Omnicom Group OMC reported impressive second-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.

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