I maintain my Hold rating on Xerox Holdings Corporation as the turnaround remains uncertain, despite some promising signs and a bold reinvention strategy. The Lexmark acquisition could boost top-line growth and accelerate digitization, but integration risks and legacy declines remain key concerns. I'm watching for updates on cost savings progress, margin improvement, and how management executes further M&A to drive transformation.
Xerox's fundamentals remain weak, with declining revenue and margins, but the stock's valuation has dropped significantly, prompting an upgrade from sell to hold. Management's optimistic narrative contrasts with poor financial results, including negative adjusted EPS and a significant free cash outflow, raising concerns about their guidance. The core print business continues to decline, with lower managed print services revenue and a shrinking legacy annuity base, indicating ongoing demand weakness.
XRX's first-quarter 2025 revenues decrease year over year.
The headline numbers for Xerox (XRX) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Xerox Holdings Corporation. (NASDAQ:XRX ) Q1 2025 Earnings Conference Call May 1, 2025 8:00 AM ET Company Participants David Beckel - VP, IR Steve Bandrowczak - CEO John Bruno - President and COO Mirlanda Gecaj - Incoming CFO Conference Call Participants Ananda Baruah - Loop Capital Eric Woodring - Morgan Stanley Samik Chatterjee - JPMorgan Operator Welcome to the Xerox Holdings Corporation's First Quarter 2025 Earnings Release Conference Call.
Xerox Holdings Corporation (XRX) came out with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of a loss of $0.05. This compares to earnings of $0.06 per share a year ago.
Xerox (XRX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Xerox (XRX) reported earnings 30 days ago. What's next for the stock?
XRX's fourth-quarter 2024 earnings and revenues decrease year over year.
Xerox's 4Q24 earnings show continued revenue decline, with core print demand shrinking and organic revenue still negative, reaffirming my sell rating. Despite cost-cutting and acquisitions, margins remain under pressure, with gross margin falling and adj EBIT margin barely stabilizing. The Lexmark acquisition, funded by new debt, adds risk without addressing the structural decline in print demand.
Xerox Holdings (XRX -7.62%) shares tumbled 11.7% through 10:25 a.m. ET Tuesday after the company missed analyst forecasts for quarterly earnings but beat on sales.
Xerox Holdings Corporation (NASDAQ:XRX ) Q4 2024 Earnings Conference Call January 28, 2025 8:00 AM ET Company Participants David Beckel - VP, IR Steve Bandrowczak - CEO John Bruno - President and COO Mirlanda Gecaj - Incoming CFO Conference Call Participants Ananda Baruah - Loop Capital Samik Chatterjee - JPMorgan Erik Woodring - Morgan Stanley Operator Thank you for standing by, and welcome to the Xerox Holdings Corporation's Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.