Xerox Loses Steam In Q1, Stock Dips
Portfolio Pulse from Anusuya Lahiri
Xerox Holdings Corp (NASDAQ: XRX) reported a significant decline in its fiscal first-quarter 2024 sales, missing analyst expectations with a 12.4% year-on-year decrease to $1.50 billion versus the consensus of $1.53 billion. Adjusted EPS also fell short at $0.06 compared to the expected $0.35. The company saw a decrease in equipment sales by 25.8% and post-sale revenue by 8.5%, with gross margin and operating income also declining. Despite these results, Xerox reiterated its FY24 revenue and free cash flow guidance. XRX shares dropped 10.8% following the announcement. Investors can also gain exposure to Xerox through ProShares Trust ProShares Metaverse ETF (NYSE: VERS) and Direxion Work From Home ETF (NYSE: WFH).
April 23, 2024 | 3:19 pm
News sentiment analysis
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NEGATIVE IMPACT
ProShares Trust ProShares Metaverse ETF (VERS) offers exposure to Xerox, which reported disappointing Q1 2024 results, potentially impacting the ETF's performance.
As VERS ETF includes Xerox in its holdings, the negative performance of Xerox could have a proportional short-term negative impact on the ETF's performance, depending on Xerox's weight within the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Direxion Work From Home ETF (WFH) includes Xerox, whose Q1 2024 earnings miss and stock price decline may affect the ETF's short-term performance.
Given that WFH ETF holds Xerox shares, the disappointing Q1 2024 performance of Xerox is likely to have a negative short-term impact on the ETF, contingent on the proportion of Xerox within the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Xerox Holdings Corp reported lower than expected Q1 2024 results, with a significant decline in sales and adjusted EPS, leading to a 10.8% drop in its stock price.
The significant miss in both sales and EPS compared to analyst expectations, coupled with declines in equipment sales, post-sale revenue, and margins, directly impacts investor sentiment and stock price in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100