NEW YORK, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Xerox Holdings Corporation (“Xerox” or the “Company”) (NYSE:XRX) on behalf of Xerox stockholders. Our investigation concerns whether Xerox has violated the federal securities laws and/or engaged in other unlawful business practices. Click here to participate in the action. On October 29, 2024, Xerox issued a press release announcing the Compa ...

Revenue Performance - Equipment sales in Q3 2024 declined by 12.2% to $339 million compared to Q3 2023, driven by backlog fluctuations, delayed product launches, and lower sales force productivity[128] - Post-sale revenue in Q3 2024 decreased by 6.1% to $1.2 billion, primarily due to lower outsourcing and service revenue, and intentional reductions in non-strategic revenue[128] - Total revenue for Q3 2024 was $1.53 billion, a 7.5% decline from Q3 2023, with a 0.2% unfavorable currency impact[134] - Print and Other segment revenue declined by 7.5% to $1.457 billion in Q3 2024, while Xerox Financial Services (XFS) revenue decreased by 10.2% to $88 million[135] - Total revenue for Q3 2024 decreased by 7.5% to $1.528 billion compared to Q3 2023, with a 0.2% adverse currency impact[137] - Equipment sales revenue for Q3 2024 decreased by 12.2% to $339 million, primarily due to delayed product launches and lower sales productivity[137][140] - Post-sale revenue for Q3 2024 decreased by 6.1% to $1.189 billion, with a 0.4% adverse currency impact, driven by declines in contractual print services and IT endpoint device placements[137][138] - Financing revenue for Q3 2024 decreased by 17.4% to $38 million, reflecting a reduction in average finance receivables balance[138] - Total revenue for the nine months ended September 30, 2024, decreased by 10.0% to $4.608 billion compared to the same period in 2023[137] - Equipment sales revenue for the nine months ended September 30, 2024, decreased by 17.7% to $985 million, impacted by unfavorable product mix and backlog fluctuations[137][140] - Post-sale revenue for the nine months ended September 30, 2024, decreased by 7.7% to $3.623 billion, driven by lower contractual print services and the termination of Fuji royalty income[137][138] - Supplies, paper, and other sales revenue for Q3 2024 decreased by 3.5% to $249 million, with a 1.2% adverse currency impact[138] - Services, maintenance, and rentals revenue for Q3 2024 decreased by 6.2% to $902 million, primarily due to declines in contractual print services[138] - Print and Other segment revenue decreased by 7.5% in Q3 2024 compared to Q3 2023, and by 10.0% for the nine months ended September 30, 2024 compared to the prior year period[164][165] - Equipment sales revenue decreased by 12.1% in Q3 2024 and by 17.7% for the nine months ended September 30, 2024 compared to the prior year periods[165][166] - Post sale revenue decreased by 5.8% in Q3 2024 and by 7.4% for the nine months ended September 30, 2024 compared to the prior year periods[165][166] - Entry product group revenue decreased by 5.4% in Q3 2024 and by 14.9% for the nine months ended September 30, 2024 compared to the prior year periods[167] - Mid-range product group revenue decreased by 13.8% in Q3 2024 and by 16.6% for the nine months ended September 30, 2024 compared to the prior year periods[167] - High-end product group revenue decreased by 14.9% in Q3 2024 and by 26.1% for the nine months ended September 30, 2024 compared to the prior year periods[167] - XFS segment revenue decreased by 10.2% in Q3 2024 compared to Q3 2023, and by 11.0% for the nine months ended September 30, 2024[171][172] - Financing revenue decreased by 17.4% in Q3 2024 compared to Q3 2023, and by 19.7% for the nine months ended September 30, 2024[171][172] - Other Post sale revenue decreased by 2.1% in Q3 2024 compared to Q3 2023, and by 0.7% for the nine months ended September 30, 2024[171][172] - Revenue for the three months ended September 30, 2024, was $1.528 billion, compared to $1.652 billion for the same period in 2023[198] - Revenue for 2024 was $4.608 billion, a decrease from $5.121 billion in 2023[199] Profitability and Margins - Net loss in Q3 2024 was $(1,205) million, compared to a net income of $49 million in Q3 2023, largely due to a $1.1 billion goodwill impairment charge[134] - Adjusted net income for Q3 2024 was $34 million, a decrease of $43 million from Q3 2023, reflecting lower revenue and higher expenses[134] - Gross margin for Q3 2024 remained flat at 32.4% compared to Q3 2023, primarily due to lower revenue, higher transportation costs, and unfavorable equipment mix, partially offset by cost and productivity actions[142] - Equipment gross margin for Q3 2024 decreased by 2.5 percentage points to 28.5% compared to Q3 2023, driven by lower revenue, higher transportation costs, and the release of a tariff accrual in the prior year[142] - Post-sale gross margin for Q3 2024 increased by 0.6 percentage points to 33.5% compared to Q3 2023, reflecting benefits from cost and productivity actions and favorable currency[142] - Adjusted operating income for Q3 2024 increased by $12 million to $80 million compared to Q3 2023, with the margin improving by 1.1 percentage points to 5.2%[141] - Third quarter 2024 pre-tax loss margin was (71.1)%, a 75.0-percentage point increase from third quarter 2023, primarily due to a $1,058 million pre-tax non-cash goodwill impairment charge[155] - Third quarter 2024 adjusted operating income margin increased by 1.1-percentage points to 5.2%, reflecting cost and productivity actions and lower selling, administrative, and general expenses[157] - Total Print and Other segment margin increased by 0.6 percentage points to 4.7% in Q3 2024 compared to Q3 2023[170] - Total Print and Other segment margin decreased by 1.4 percentage points to 4.2% for the nine months ended September 30, 2024 compared to the prior year period[170] - XFS segment margin increased by 10.7 percentage points to 14.8% in Q3 2024 compared to Q3 2023[174] - Adjusted profit for 2024 was $198 million, with an adjusted margin of 4.3%, compared to $293 million and 5.7% in 2023[199] - Pre-tax loss for 2024 was $1.212 billion, representing a margin of -26.3%, compared to a pre-tax income of $60 million and a margin of 1.2% in 2023[199] Cash Flow and Debt - Cash flows from operating activities for the nine months ended September 30, 2024, were $160 million, a decrease of $137 million from the prior year period[136] - Operating cash flows for 2024 are now expected to be between $490 million and $540 million, compared to prior guidance of at least $600 million[136] - Total cash, cash equivalents, and restricted cash decreased by $27 million to $590 million as of September 30, 2024[175][176] - Net cash provided by operating activities decreased by $137 million to $160 million for the nine months ended September 30, 2024[176][177] - Total debt increased to $3,271 million as of September 30, 2024, with $1,963 million allocated to finance assets[175][182] - Total finance assets, net decreased by $531 million to $2,244 million as of September 30, 2024[183] - Capital expenditures for 2024 are now expected to be approximately $40 million, down from previous guidance of approximately $50 million[175] - Total debt decreased slightly from $3,277 million in December 2023 to $3,271 million in September 2024, with core debt increasing from $849 million to $1,308 million[185] - Principal debt maturities over the next five years total $3,315 million, with $2,038 million from Xerox Holdings Corporation and $1,129 million from Xerox Corporation[186] Restructuring and Costs - Restructuring and related costs for Q3 2024 increased to $56 million compared to $10 million in Q3 2023, primarily due to strategic actions related to the company's Reinvention[145] - Worldwide employment decreased by approximately 2,800 to 17,300 as of September 30, 2024, primarily due to workforce reduction decisions and net attrition[145] - Bad debt provision for the nine months ended September 30, 2024 increased by $18 million to $35 million compared to the prior year period, reflecting higher provisions for aged accounts receivables[144] - Third quarter 2024 non-financing interest expense increased by $17 million to $31 million compared to third quarter 2023, primarily due to higher interest rates on new debt issued in the first quarter of 2024[147] - Third quarter 2024 non-service retirement-related costs increased by $21 million to $25 million compared to third quarter 2023, driven by higher actuarial losses and lower expected return on plan assets[148] - Xerox reported restructuring and related costs of $56 million for the three months ended September 30, 2024[198] - The company recorded amortization of intangible assets of $10 million for the three months ended September 30, 2024[198] - Restructuring and related costs for 2024 were $107 million, compared to $35 million in 2023[199] - Amortization of intangible assets for 2024 was $30 million, compared to $33 million in 2023[199] - Divestitures in 2024 resulted in a cost of $51 million, with no comparable cost in 2023[199] - PARC donation in 2023 was $132 million, with no comparable donation in 2024[199] - Other expenses, net for 2024 were $120 million, compared to $33 million in 2023[199] - Inventory-related impact due to the exit of certain production print manufacturing operations was $44 million in 2024, with no comparable impact in 2023[199] Strategic Agreements and Investments - Xerox entered into a seven-year agreement with TCS for technology services consolidation, cloud migration, and GenAI integration, with a spending commitment of $490 million[188][190] - Xerox signed a seven-year agreement with Microsoft for Azure cloud platform services, committing $125 million[188][190] - Xerox committed $50 million to SAP for a cloud-based digital ERP platform over seven years[188][190] - Xerox entered into a five-year agreement with Verizon for Network as a Service (NaaS) solutions, with a spending commitment of $85 million[188][190] - Xerox renewed its shared services arrangement with HCL, committing $590 million over five years[189][190] Financial Risk Management - Xerox's financial risk management includes hedging against foreign currency and interest rate risks using derivative instruments[191] - Adjusted earnings measures exclude restructuring costs, amortization of intangible assets, and non-service retirement-related costs to provide a clearer view of operational performance[192][193] - Adjusted operating income and margin exclude non-financing interest expense and other non-operating costs to better evaluate business trends[194] Other Financial Metrics - Adjusted net income for the three months ended September 30, 2024, was $34 million, with an adjusted diluted EPS of $0.25[195] - Xerox recorded a goodwill impairment charge of $1.058 billion pre-tax ($1.015 million after-tax) for the three months ended September 30, 2024[195] - The company established a deferred tax asset valuation allowance of $161 million, resulting in a tax expense charge of $1.29 per diluted share for the three months ended September 30, 2024[195] - Adjusted operating income for the three months ended September 30, 2024, was $80 million, with an adjusted operating margin of 5.2%[198] - Adjusted effective tax rate for the three months ended September 30, 2024, was 27.7%, compared to 7.2% for the same period in 2023[196] - Adjusted pre-tax income for the three months ended September 30, 2024, was $47 million, compared to $83 million for the same period in 2023[196] - Net loss for the three and nine months ended September 30, 2024 was $1.3 billion, including a non-cash goodwill impairment charge of $1.058 billion pre-tax[199]

Xerox Holdings Corporation’s (XRX) stock has declined 4% since the company’s second-quarter 2024 results. This downward trajectory can be attributed to dismal quarterly performance and weak guidance.See Zacks Earnings Calendar to stay ahead of market-making news.Third-quarter adjusted EPS of 25 cents missed the Zacks Consensus Estimate by 52.8% and declined 45.7% year over year. Total revenues of $1.53 billion missed the consensus mark by 3.6% and decreased 7.5% year over year on a reported basis. Revenues ...

Core Viewpoint - The article provides an update on Xerox Holdings (NASDAQ: XRX) following a previous recommendation to sell due to expectations of missing FY24 guidance, emphasizing a fundamentals-based approach to value investing [1] Group 1: Investment Philosophy - The company disagrees with the notion that low multiple stocks are inherently cheap, focusing instead on long-term durability and affordability [1] - A preference is shown for companies with steady long-term growth, no cyclicality, and a strong balance sheet [1] - The article highlights the risk of overpaying for successful companies, underscoring the importance of valuation [1] Group 2: Market Outlook - There are situations where the potential for growth is so significant that immediate price considerations become less critical [1]

Xerox Holdings Corporation (NASDAQ: XRX ) recently reported its Q3 results , which were met very negatively by the investment community. I wanted to take a look at the numbers and give some comments on where I thinkMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Anal ...

Core Insights - Xerox Holdings Corporation reported $1.53 billion in revenue for Q3 2024, a year-over-year decline of 7.5% [1] - The company's EPS for the same period was $0.25, down from $0.46 a year ago, reflecting a significant EPS surprise of -52.83% compared to the consensus estimate of $0.53 [1] Revenue Breakdown - Financing revenues were $38 million, slightly below the estimated $39.40 million [3] - Services, maintenance, and rentals generated $902 million, compared to the estimated $958.48 million, marking a -6.2% year-over-year change [3] - Sales revenues were reported at $588 million, slightly above the estimated $587.75 million, with an -8.7% year-over-year decline [3] - Supplies, paper, and other sales reached $249 million, exceeding the average estimate of $234.74 million, representing a -3.5% year-over-year change [3] - Equipment sales totaled $339 million, below the estimated $353.01 million, reflecting a -12.2% year-over-year decline [3] - Other equipment sales were reported at $5 million, significantly above the estimate of $2.95 million, showing a +66.7% year-over-year increase [3] - High-end equipment sales were $57 million, below the estimated $61.56 million, with a -14.9% year-over-year change [3] - Entry-level equipment sales were $53 million, slightly above the estimated $49.56 million, representing a -5.4% year-over-year change [3] - Post-sale revenue was $1.19 billion, below the estimated $1.24 billion, marking a -6.1% year-over-year decline [3] - Mid-range equipment sales were reported at $224 million, below the estimated $244.13 million, reflecting a -13.9% year-over-year change [3] Stock Performance - Xerox shares have returned -1% over the past month, underperforming the Zacks S&P 500 composite, which increased by +1.7% [4] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [4]

Financial Data and Key Metrics - Revenue for Q3 2024 was $1.5 billion, a decline of 7.5% in actual currency and 7.3% in constant currency [8] - Adjusted EPS was $0.25, $0.21 lower year-over-year due to the one-time sale of non-core business assets in the prior year [9] - Free cash flow was $107 million, $5 million lower year-over-year [9] - Adjusted operating margin improved by 110 basis points year-over-year to 5.2% [9] - GAAP loss per share of $9.71 included a non-cash goodwill impairment charge of approximately $1 billion [39] Business Line Performance - Print equipment sales declined by 12% due to delays in global product launches and lower-than-expected sales force productivity [11][41] - Digital and managed IT services revenue grew double digits, with new business signings up double digits [17] - Services revenue retention rate for large client renewals remained above 100% [16] - Entry-level equipment revenue declined despite higher installations due to an unfavorable mix of low-end black-and-white multifunction printers [42] Market Performance - Revenue in the Americas showed improvement in client perception, with a net promoter score increase of 11 points [15] - Geographic simplification efforts included transitioning Hungary and Bulgaria to an indirect distribution model and selling the EMEA paper business [26] - The pending acquisition of ITsavvy is expected to improve revenue mix and market coverage, particularly in IT services [32] Strategic Direction and Industry Competition - The company is focused on reinvention, aiming to streamline operations and benefit from long-term trends in print, digital, and IT services [10] - Strategic priorities include aligning the organization with economic buyers, improving sales productivity, and expanding digital and IT services [13][17] - The acquisition of ITsavvy is expected to enhance the company's IT services portfolio and drive growth in existing client penetration [32][33] Management Commentary on Operating Environment and Future Outlook - Management acknowledged challenges in equipment sales but expressed confidence in resolving product launch delays and improving sales productivity [11][14] - The company expects a return to revenue growth in 2025, supported by new product launches, improved sales productivity, and the ITsavvy acquisition [53] - Adjusted operating income is expected to grow, with a return to double-digit margins over the course of the reinvention [54] Other Important Information - The company reduced operating expenses by more than $50 million year-over-year in Q3 and $125 million year-to-date [18] - A pipeline of over $400 million in gross cost savings is expected to be realized by 2026 [20][50] - The company signed agreements to sell future finance receivable originations in Canada, improving balance sheet health [21] Q&A Session Summary Question: Product Delays and Sales Productivity - The product delay was attributed to poor forecasting and timing issues between demand and supply signaling [59][60] - Sales productivity was impacted by organizational changes and a reduction in sales headcount, but improvements are expected in Q4 and 2025 [58][62] Question: Confidence in 2025 Growth and Margin Expansion - Management expressed confidence in achieving revenue growth and margin expansion in 2025 due to strategic initiatives, cost reductions, and the ITsavvy acquisition [70][72] Question: ITsavvy Acquisition Accretion - The ITsavvy acquisition is expected to be immediately accretive to EPS and free cash flow, with $15 million in cost synergies and improved EBITDA margins [75][76] Question: ITsavvy Revenue Classification - ITsavvy revenue will be distributed similarly to current revenue streams, with a focus on IT and digital services, which are expected to grow to 15% of total revenue [79][80]

Xerox Holdings Corporation (XRX) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -52.83%. A quarter ago, it was expected that this company would post earnings of $0.46 per share when it actually produced earnings of $0.29, delivering a surprise of -36.96%.Over the last four quarters, ...

Financial Performance - Q3 2024 - Revenue decreased by 75% year-over-year to $1528 billion, or 73% in constant currency[9, 10] - Adjusted operating margin was 52%, an increase of 110 basis points year-over-year[9] - The company reported a GAAP loss per share of $(971), which includes an after-tax non-cash goodwill impairment charge of approximately $10 billion, or $816 per share, and a tax expense charge of $161 million, or $129 per share[2, 9] - Adjusted earnings per share were $025, a decrease of 46% year-over-year[2, 9] - Free cash flow was $107 million, compared to $112 million in Q3 2023[2, 13] Strategic Initiatives and Cost Savings - The company identified over $700 million in gross cost savings through geographic and offering simplification[4] - The company expects close to $200 million in incremental gross Reinvention savings in 2024[22] - The company expects around $125 million of incremental gross Reinvention savings from actions taken or expected to be taken in the near-term (2025-2026)[22] ITsavvy Acquisition - Xerox announced the intended acquisition of ITsavvy for $400 million[5] - ITsavvy has LTM revenue of approximately $445 million with 9% year-over-year growth and LTM EBITDA of approximately $30 million[6] - The acquisition is expected to be immediately accretive to adjusted earnings per share and free cash flow[6] Guidance - The company expects a revenue decline of approximately 10% in constant currency for the full year 2024[8, 23] - The company expects an adjusted operating margin of approximately 50% for the full year 2024[8, 23] - The company expects free cash flow to be in the range of $450 million to $500 million for the full year 2024[8, 23]

EXHIBIT 99.1 News from Xerox Holdings Corporation https://files reportify c Xerox Releases Third-Quarter Results Reinvention drives increased profitability despite a challenging quarter for equipment sales; pending acquisition of ITsavvy to improve revenue mix from higher growth businesses Financial Summary Q3 2024 • Revenue of $1.53 billion, down 7.5 percent, or 7.3 percent in constant currency. • GAAP net (loss) of $(1.2) billion, or $(9.71) per share, a decrease of $1.3 billion or $9.99 per share, year-o ...