## Xerox Holdings (XRX) Earnings Preview: What to Expect on October 29th
All eyes will be on Xerox Holdings (XRX) as the company prepares to release its latest quarterly earnings report on Tuesday, October 29th. Investors are eager to see if Xerox can deliver on analyst expectations and provide positive guidance for the future.
What to Watch for:
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Earnings per Share (EPS):
Analysts are projecting an EPS of $0.54 for the quarter. Beating these estimates would be a positive sign for investors, indicating strong financial performance.*
Guidance:
Guidance for the next quarter is another crucial factor investors will be scrutinizing. Positive guidance suggests the company is optimistic about its future prospects and could lead to upward stock price movements.A Look at Xerox Holdings’ Recent Performance:
In its previous earnings release, Xerox missed EPS estimates by $0.14. Despite this, the share price experienced a 1.94% increase in the following trading session. Here’s a breakdown of Xerox Holdings’ past earnings performance and the resulting stock price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | $0.43 | $0.29 | 2.0% |
| Q1 2024 | $0.35 | $0.06 | -3.0% |
| Q4 2023 | $0.53 | $0.43 | 5.0% |
| Q3 2023 | $0.35 | $0.46 | -4.0% |
Analyst Insights:
Understanding market sentiment and analyst expectations is key for investors. Currently, analysts have assigned Xerox Holdings a consensus rating of Neutral, based on two ratings. The average one-year price target is $11.0, suggesting a potential 10.55% upside.
Peer Comparisons:
To gain further perspective on Xerox’s performance, let’s compare it to two prominent industry players: Diebold Nixdorf and Corsair Gaming.
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Diebold Nixdorf:
Analysts maintain an Outperform rating for Diebold Nixdorf with an average one-year price target of $55.0, indicating a potential 452.76% upside.*
Corsair Gaming:
Analysts have a Neutral outlook for Corsair Gaming with an average one-year price target of $10.5, suggesting a potential 5.53% upside.A Deeper Look at Key Metrics:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Xerox Holdings | Neutral | -10.03% | $520M | 0.63% |
| Diebold Nixdorf | Outperform | 1.90% | $243.20M | 1.48% |
| Corsair Gaming | Neutral | -19.71% | $63.09M | -4.53% |
Key Takeaway:
Xerox Holdings boasts the highest Gross Profit and Return on Equity among its peers. However, it lags behind in Revenue Growth.The Story Behind Xerox Holdings:
Xerox Holdings Corp is a leading original equipment manufacturer (OEM) and software company specializing in printing technology and related solutions. Its primary market focus is on large enterprise markets, providing multifunction printers (MFPs) that combine printing, copying, and scanning capabilities. Beyond equipment, Xerox offers post-sales services like managed print services, which help businesses optimize their print and copy equipment usage. The company is also expanding into new markets, including digital print packaging solutions and printed electronics.
Financial Highlights:
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Market Capitalization:
Xerox Holdings has a relatively lower market capitalization compared to its peers, indicating a smaller scale.*
Revenue Growth:
The company faced revenue challenges in the past quarter, experiencing a decline of approximately -10.03% as of June 30, 2024. This highlights a decrease in top-line earnings and falls behind its industry peers.*
Net Margin:
Xerox Holdings boasts an impressive net margin of 0.95%, demonstrating efficient cost management and strong financial health.*
Return on Equity (ROE):
Xerox Holdings’ ROE is below industry standards, indicating potential difficulties in efficiently utilizing equity capital.*
Return on Assets (ROA):
The company’s ROA is above industry averages, showcasing effective utilization of assets.*
Debt Management:
Xerox Holdings’ high debt-to-equity ratio of 1.4 suggests potential financial strain due to challenges in managing its debt levels.Stay tuned for Xerox Holdings’ earnings release on October 29th and follow Benzinga for ongoing analysis and insights.
