U.S. markets closed
  • S&P 500

    4,432.99
    -40.76 (-0.91%)
     
  • Dow 30

    34,584.88
    -166.44 (-0.48%)
     
  • Nasdaq

    15,043.97
    -137.96 (-0.91%)
     
  • Russell 2000

    2,236.87
    +3.96 (+0.18%)
     
  • Crude Oil

    71.96
    -0.65 (-0.90%)
     
  • Gold

    1,753.90
    -2.80 (-0.16%)
     
  • Silver

    22.42
    -0.33 (-1.44%)
     
  • EUR/USD

    1.1732
    -0.0040 (-0.34%)
     
  • 10-Yr Bond

    1.3700
    +0.0390 (+2.93%)
     
  • GBP/USD

    1.3737
    -0.0059 (-0.43%)
     
  • USD/JPY

    109.8950
    +0.1770 (+0.16%)
     
  • BTC-USD

    47,522.47
    -891.91 (-1.84%)
     
  • CMC Crypto 200

    1,193.48
    -32.05 (-2.62%)
     
  • FTSE 100

    6,963.64
    -63.84 (-0.91%)
     
  • Nikkei 225

    30,500.05
    +176.71 (+0.58%)
     

Xerox's (XRX) Second-Quarter Earnings Beat, Increase Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Xerox Holdings Corporation XRX reported impressive second-quarter 2021 results, with both earnings and revenues beating the Zacks Consensus Estimate.

Adjusted earnings per share of 47 cents surpassed the consensus mark by 34.3% and increased more than 100% year over year. Total revenues of $1.8 billion surpassed the consensus mark by 4.8% and surged 22.4% year over year on a reported basis and 18.1% on a constant-currency basis.

The company’s shares have gained 49.3% over the past year, underperforming the 70.1% rally of the industry it belongs to.

Xerox Holdings Corporation Price

Xerox Holdings Corporation Price
Xerox Holdings Corporation Price

Xerox Holdings Corporation price | Xerox Holdings Corporation Quote

Revenues in Detail

Equipment sales revenues totaled $429 million, up 38.4% year over year on a reported basis and 34% on a constant-currency basis, contributing 24% to total revenues. Post-sale revenues totaled $1.4 billion, up 18.1% year over year on a reported basis and 13.8% on a constant-currency basis, contributing 76% to total revenues.

Operating Performance

Adjusted operating profit of $126 million increased more than 100% year over year. Adjusted operating margin expanded 280 basis points (bps) year over year to 7%. Selling, administrative and general expenses, as a percentage of revenues, decreased 490 bps year over year to 24.2%. Research, development and engineering expenses, as a percentage of revenues, came in at 4.4%, down from the year-ago quarter’s 5.2%.

Key Balance Sheet and Cash Flow Figures

Xerox exited the quarter with cash and cash equivalent balance of $2.1 billion compared with $2.4 billion at the end of the prior quarter. Long-term debt was $3.6 billion compared with $3.7 billion at the end of the previous quarter.

The company generated $214 million of cash from operating activities and paid out $54 million as dividends. Capital expenditures and free cash flow during the quarter were $16 million and $198 million, respectively.

2021 Guidance

Xerox expects operating cash flow and free cash flow to be $600 million and $500 million, respectively, for full-year 2021.

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.

Performance of Some Other Business Services Companies

Equifax EFX reported better-than-expected second-quarter 2021 results. Adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved 23.8% on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 25.6% year over year.

IHS Markit’s INFO second-quarter fiscal 2021 adjusted earnings per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter.

Omnicom OMC reported second-quarter 2021 adjusted earnings of $1.46 per share that beat the consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.


Want 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

IHS Markit Ltd. (INFO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research