Xerox Holdings Stock Declines 2.8% Since Q2 Earnings Miss

Xerox Holdings XRX reported unimpressive second-quarter 2025 results, wherein both earnings and revenues lagged the Zacks Consensus Estimate.The narrower-than-expected results failed to impress the market, as the company’s shares have declined 2.8% since the earnings release on July 31.Image Source: Zacks Investment ResearchThe company reported a quarterly adjusted loss of 64 cents per share, missing the Zacks Consensus Estimate for earnings of 10 cents, and decreased more than 100% from the year-ago quarter. Revenues of $1.58 billion lagged the consensus estimate by 0.8% and declined 0.13% on a year-over-year 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 59.5% over the past year compared with the Office Supplies industry’s 42.4% decline and the 20.8% rise of the S&P 500.Q2 Revenue Details of XRXPost-sale revenues came in at $1.24 billion, up 1.5% year over year on a reported basis and 0.5% at cc, lagging our estimate of $1.27 billion. Equipment sales declined 5.6% year over year on a reported basis and 6.7% at cc to $336 million, beating our estimate of $330.9 million.The Print and Other segment’s revenues totaled $1.37 billion, down 8.6% year over year on a reported basis and 9.7% at cc and missing our estimate of $1.46 billion.Sales revenues amounted to $665 million, up 8.8% year over year on a reported basis and 8.5% at cc. Services, maintenance, rentals and other revenues include financing revenues generated from direct and indirectly financed Xerox equipment sale transactions of $32 million and $38 million for the second quarter of 2025 and 2024, respectively.XRX’s Operating PerformanceAdjusted operating income came in at $59 million, down 30.6% on a year-over-year basis. The adjusted operating margin was 3.7%, down 170 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 $449 billion compared with $576 million at the end of the December-end quarter of 2024. The company’s net cash used in operating activities and free cash flow for the quarter were down by $134 million and $145 million year over year, resulting in negative cash flow from operating activities and free cash flow of $11 million and $30 million, respectively.Xerox’s 2025 GuidanceFor 2025, Xerox expects 16%-17% revenue growth at constant currency. The adjusted operating margin is projected to be approximately 4.5%. The company anticipates free cash flow to be approximately $250 million.The operating cash flow for 2025 is expected to be approximately $345 million, and capital expenditures are anticipated to be $95 million.Xerox’s Zacks RankXRX 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 second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.FI’s adjusted earnings per share of $2.47 topped the consensus mark by 2.5% and rose 16% year over year. However, adjusted revenues of $5.2 billion missed the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.The Interpublic Group of Companies, Inc. IPG reported impressive second-quarter 2025 results. Both earnings and revenues beat the Zacks Consensus Estimate.IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>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