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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 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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