Xerox Holdings Corporation’s XRX stock has declined 9.5% since the company’s fourth-quarter 2024 results. This downward trajectory can be attributed to dismal earnings performance.

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Fourth-quarter adjusted EPS of 36 cents missed the Zacks Consensus Estimate by 30.8% and declined 16.3% year over year. Total revenues of $1.5 billion surpassed the consensus mark by 1.5% but decreased 8.6% year over year on a reported basis. Revenues declined 8% on a constant-currency (CC) basis.

Q4 Revenue Details for XRX

Post-sale revenues came in at $1.22 billion, down 6.7% year over year on a reported basis and 6.1% at cc, surpassing our estimate of $1.21 billion. Equipment sales declined 14.2% year over year on a reported basis and 13.4% at cc to $393 million, beating our estimate of $378.7 million.

The Print and Other segment’s revenues totaled $1.54 billion, down 8.7% year over year and surpassing our estimate of $1.51 billion. Xerox Financial Services revenues totaled $89 million, down 11% year over year and lagging our estimate of $98.5 million.

Sales revenues totaled $656 million, down 9% year over year on a reported basis and 7.9% at cc. Services, maintenance and rental revenues totaled $924 million, down 7.6% year over year on a reported basis and 7.3% at cc. Financing revenues of $33 million decreased 25% year over year on a reported basis and 24% at cc.

XRX’s Operating Performance

Adjusted operating income came in at $104 million, up 6.4% on a year-over-year basis. Adjusted operating margin was 6.4%, up 100 basis points year over year.

XRX’s Key Balance Sheet and Cash Flow Figures

Xerox exited the quarter with a cash and cash equivalent balance of $576 billion compared with $521 million at the end of the prior quarter. The company’s operating cash flow and free cash flow were $351 million and $334 million, respectively, in the quarter.

2025 Guidance

Xerox expects low single-digit revenue growth at constant currency. Adjusted operating margin expectation is at least 5%. The company expects free cash flow to be $350 to $400 million.

XRX currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Broadridge Financial Solutions, Inc. BR has reported impressive second-quarter fiscal 2025 results.

BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.

Automatic Data Processing, Inc. ADP reported impressive second-quarter fiscal 2025 results.

ADP’s earnings per share of $2.4 beat the consensus estimate by 3.5% and increased 10.3% from the year-ago quarter. Total revenues of $5.1 billion surpassed the consensus estimate by 1.6% and grew 8.1% on a year-over-year basis.

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