Xerox Holdings Reports Q1 Loss, Revenues Miss Estimates

Xerox Holdings Corporation XRX reported a first-quarter 2025 loss of six cents per share compared with the Zacks Consensus Estimate of a loss of 5 cents and the year-ago earnings of 6 cents.Revenues of $1.46 billion missed the Zacks Consensus Estimate by 3.2% and decreased 3% year over year on a reported basis. Revenues declined 1.1% on a constant-currency (CC) basis.Xerox Holdings Corporation Price, Consensus and EPS Surprise Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation QuoteThe company’s shares have depreciated 67.6% over the past year compared with the Office Supplies industry’s 47.5% decline.Q1 Revenue Details of XRXPost-sale revenues came in at $1.17 billion, down 3.2% year over year on a reported basis and 1.2% at cc, lagging our estimate of $1.21 billion. Equipment sales declined 2.1% year over year on a reported basis and 0.7% at cc to $284 million, beating our estimate of $262.8 million.The Print and Other segment’s revenues totaled $1.29 billion, down 9.4% year over year and missing our estimate of $1.46 billion.Sales revenues totaled $557 million, down 6.5% year over year on a reported basis and 8.7% at cc. Services, maintenance, rentals and other revenues include financing revenue generated from direct and indirectly financed Xerox equipment sale transactions of $33 million and $42 million for the first quarter of 2025 and 2024, respectively.XRX’s Operating PerformanceAdjusted operating income came in at $22 million, down 33.3% on a year-over-year basis. The adjusted operating margin was 1.5%, down 70 basis points year over year.XRX’s Key Balance Sheet and Cash Flow FiguresXerox exited the quarter with a cash and cash equivalent balance of $336 billion compared with $576 million at the end of the prior quarter. The company’s net cash used in operating activities and free cash flow were $89 million and $109 million, respectively, in the quarter.Xerox’s 2025 GuidanceXerox expects low single-digit revenue growth at constant currency. The adjusted operating margin expectation is at least 5%. The company expects free cash flow to be $350 to $400 million.The operating cash flow for 2025 is expected to be around $420-470 million, and capital expenditures are anticipated to be $70 million.XRX currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotFiserv, Inc. FI reported mixed first-quarter 2025 results. The company’s earnings beat the Zacks Consensus Estimate, while revenues missed the mark.FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the ZacksEarnings Calendar to stay ahead of market-making news.)The Interpublic Group of Companies, Inc. IPG reported mixed first-quarter 2025 results. The company’s earnings topped the Zacks Consensus Estimate, while revenues missed the mark.IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Xerox Holdings Corporation (XRX): Free Stock Analysis Report Interpublic Group of Companies, Inc. (The) (IPG): Free Stock Analysis Report Fiserv, Inc. (FI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks