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Xerox Holdings Corporation XRX reported a first-quarter 2025 loss of six cents per share compared with the Zacks Consensus Estimate of a loss of 5 cents and the year-ago earnings of 6 cents.
Revenues of $1.46 billion missed the Zacks Consensus Estimate by 3.2% and decreased 3% year over year on a reported basis. Revenues declined 1.1% on a constant-currency (CC) basis.
Xerox Holdings Corporation Price, Consensus and EPS Surprise
Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation Quote
The company’s shares have depreciated 67.6% over the past year compared with the Office Supplies industry’s 47.5% decline.
Q1 Revenue Details of XRX
Post-sale revenues came in at $1.17 billion, down 3.2% year over year on a reported basis and 1.2% at cc, lagging our estimate of $1.21 billion. Equipment sales declined 2.1% year over year on a reported basis and 0.7% at cc to $284 million, beating our estimate of $262.8 million.
The Print and Other segment’s revenues totaled $1.29 billion, down 9.4% year over year and missing our estimate of $1.46 billion.
Sales revenues totaled $557 million, down 6.5% year over year on a reported basis and 8.7% at cc. Services, maintenance, rentals and other revenues include financing revenue generated from direct and indirectly financed Xerox equipment sale transactions of $33 million and $42 million for the first quarter of 2025 and 2024, respectively.
XRX’s Operating Performance
Adjusted operating income came in at $22 million, down 33.3% on a year-over-year basis. The adjusted operating margin was 1.5%, down 70 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 $336 billion compared with $576 million at the end of the prior quarter. The company’s net cash used in operating activities and free cash flow were $89 million and $109 million, respectively, in the quarter.
Xerox’s 2025 Guidance
Xerox expects low single-digit revenue growth at constant currency. The adjusted operating margin expectation is at least 5%. The company expects free cash flow to be $350 to $400 million.
The operating cash flow for 2025 is expected to be around $420-470 million, and capital expenditures are anticipated to be $70 million.
XRX currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Fiserv, Inc. FI reported mixed first-quarter 2025 results. The company’s earnings beat the Zacks Consensus Estimate, while revenues missed the mark.