Yahoo Finance Xerox (XRX) Q4 Earnings Surpass Estimates, Increase Y/Y
Xerox Holdings Corporation XRX reported better-than-expected fourth-quarter 2022 results.
Adjusted EPS of 89 cents beat the Zacks Consensus Estimate by 64.8% and increased more than 100% year over year. Total revenues of $1.9 billion surpassed the consensus mark by 4% and increased 9.2% year over year on a reported basis. Revenues increased 13.9% on a constant-currency basis.
The company’s shares have gained 18.7% over the past three months compared with the 11.1% rally of the industry it belongs to.
Quarter Details
Print and Other segment revenues totaled $1.8 billion, up 11.1% year over year. The Financing (FITTLE) segment’s revenues totaled $151 million, down 9.6% year over year.
Sales revenues totaled $851 million, up from $653 million reported in the year-ago quarter. Services, maintenance and rental revenues totaled $1 billion, down 2.8% year over year. Financing revenues of $51 million decreased 7.3% year over year.
Adjusted operating income was $178 million compared with $86 million in the year-ago quarter. Adjusted operating margin of 9.2% improved 440 basis points year over year.
Xerox exited the quarter with a cash and cash equivalent balance of $1.5 billion compared with $932 million at the end of the prior quarter. The company’s operating cash outflow and free cash outflow were $186 million and $168 million, respectively, in the quarter.
Xerox Holdings Corporation Price, Consensus and EPS Surprise
Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation Quote
2022 Guidance
Xerox expects 2023 revenue growth to be flat to down low-single digits on a constant-currency basis, adjusted operating margin of at least 4.7% and free cash flow of at least $500 million.
Xerox currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Zacks Business Services sector can consider stocks like Trane Technologies TT, Waste Management WM and Republic Services RSG, which are going to report fourth-quarter 2022 numbers soon.
Trane Technologies is set to release results on Feb 2. The stock has an expected earnings growth rate of 17.9% for 2022.
Trane Technologies has a long-term expected earnings growth of 11%.
Waste Management is set to report quarterly numbers on Feb 1. The stock has an expected earnings growth rate of 17.8% for 2022.
Waste Management has a long-term expected earnings growth of 12.6%.
Republic Services is set to report results on Feb 15. The stock has an expected earnings growth rate of 15.6% for the current year.
Republic Services has a long-term expected earnings growth of 11.3%.
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Xerox Holdings Corporation (XRX) : Free Stock Analysis Report
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