Xerox's Challenging Q4: Stock Drops On Earnings Dip, CEO Emphasizes On Simplifying Business Structure
Portfolio Pulse from Anusuya Lahiri
Xerox Holdings Corp (NASDAQ: XRX) reported a decline in fiscal Q4 2023 sales by 9.1% Y/Y to $1.77 billion, missing estimates of $1.79 billion. Adjusted EPS was $0.43, below the consensus of $0.52. Equipment sales and post-sale revenue also fell. Gross margin and adjusted operating income decreased, while the company maintained $519 million in cash and equivalents. CEO Steve Bandrowczak emphasized efforts to simplify the business and improve operating margins. Xerox's FY24 revenue outlook is below consensus, and shares dropped 6.02% in premarket trading.
January 25, 2024 | 2:22 pm
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NEGATIVE IMPACT
Xerox reported lower Q4 earnings and revenue, with a significant drop in equipment sales and post-sale revenue. The company's FY24 revenue outlook is also below expectations, leading to a premarket stock price decline.
The negative earnings report and the lower-than-expected FY24 outlook are likely to impact investor sentiment negatively in the short term, as evidenced by the premarket stock price decline. The drop in equipment sales and post-sale revenue, along with a decrease in gross margin and adjusted operating income, are critical factors that investors consider when assessing the company's performance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100