Xerox Holdings Corporation (XRX) came out with quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -36.96%. A quarter ago, it was expected that this company would post earnings of $0.38 per share when it actually produced earnings of $0.06, delivering a surprise of -84.21%.Over the last four quarters, ...

Earnings Presentation Q2 2024 Results July 25, 2024 xerox 2 Forward-Looking Statements This presentation and other written or oral statements made from time to time by management contain "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate", "believe", "estimate", "expect", "intend", "will", "should", "targeting", "projecting", "driving" and similar expressions, as they relate to us, our performance and/or our technology, are intended to iden ...

EXHIBIT 99.1 News from Xerox Holdings Corporation Xerox Releases Second-Quarter Results Reinvention drives sequential operating and financial improvements in Q2; Company revises full-year outlook, reiterates three-year adjusted operating income improvement target Financial Summary Q2 2024 • Revenue of $1.58 billion, down 10 percent, or 9.6 percent in constant currency. • GAAP net income of $18 million, or $0.11 per share, up $79 million or $0.52 per share, year-over-year, respectively. • Adjusted net income ...

Core Viewpoint - Xerox Holdings Corporation is focusing on "Project Own It" and a post-sale-driven business model to achieve strong financial performance, with earnings expected to grow by 12.6% in 2024 and 10.7% in 2025 [1] Group 1: Growth Factors - Xerox is expanding its presence in small and mid-sized markets in the U.S., U.K., and Canada through Xerox Business Solutions and global acquisitions of dealers and IT service providers [2] - The company is enhancing its portfolio by integrating cybersecurity and robotic process automation solutions [2] - "Project Own It" is an enterprise-wide transformation initiative aimed at increasing productivity, operational efficiency, and cost reduction while realigning the business to adapt to changing market conditions [2] - The initiative contributes significantly to cost savings and frees up capital for further investments [2] - Xerox's current ratio at the end of Q1 2024 was 1.37, an improvement from 1.14 in the previous quarter and 1.26 a year ago, indicating strong liquidity to meet short-term obligations [2] Group 2: Risks - The company faces decreased demand for paper-related systems and products due to advancements in IT and the shift to digital media [3] - Xerox's business is vulnerable to security breaches from cyber and malware attacks, which can have significant financial and reputational impacts [3]

Core Viewpoint - Xerox Holdings Corporation reported disappointing first-quarter 2024 results, with both earnings and revenues missing consensus estimates, leading to a negative trend in stock performance [2][9]. Financial Performance - Adjusted EPS for Q1 2024 was 6 cents, missing the Zacks Consensus Estimate by 84.2% and declining over 87.8% year-over-year [2]. - Total revenues were $1.5 billion, missing the consensus mark by 4.8% and decreasing 12.4% year-over-year on a reported basis [2]. - Post-sale revenues were $1.2 billion, down 8.5% year-over-year, primarily due to reductions in lower-margin products and geographic simplification [3]. - Equipment sales fell 25.8% year-over-year to $290 million, attributed to backlog reduction and geographic simplification [3]. - Print and Other segment revenues totaled $1.43 billion, down 12.6% year-over-year [3]. - Services, maintenance, and rental revenues were $937 million, down 6.7% year-over-year [4]. Operating Performance - Adjusted operating income was $33 million, down 72% year-over-year, with an adjusted operating margin of 2.2%, up 470 basis points year-over-year [5]. Balance Sheet and Cash Flow - Xerox ended the quarter with cash and cash equivalents of $685 million, an increase from $519 million in the previous quarter [6]. - Operating cash outflow was $79 million, and free cash outflow was $89 million for the quarter [6]. 2024 Guidance - The company expects 2024 revenues to decline by 3% to 5% on a constant currency basis, with an adjusted operating margin of at least 7.5% and free cash flow of at least $600 million [7]. Market Sentiment - Estimates for Xerox have trended downward, with a consensus estimate shift of -7.14% over the past month [7]. - The stock has an average Growth Score of C and a Momentum Score of D, but a grade of A on the value side, placing it in the top quintile for this investment strategy [8]. - Xerox currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of below-average returns in the coming months [9].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to XEROX HOLDINGS CORPORATION XEROX CORPORATION (Exact Name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organiza ...

Core Insights - Xerox Holdings Corporation reported disappointing first-quarter 2024 results, with both earnings and revenues falling short of the Zacks Consensus Estimate [1] - The stock declined 2.6% since the earnings release on April 23, and has depreciated 21.5% year to date, contrasting with a 0.4% growth in the industry [1] Revenue Performance - Total revenues for the quarter were $1.5 billion, missing the consensus mark by 4.8% and decreasing 12.4% year over year [1] - Post-sale revenues were $1.2 billion, down 8.5% year over year, primarily due to reductions in nonstrategic, lower margin paper and IT endpoint device placements [2] - Equipment sales fell 25.8% year over year to $290 million, lagging behind estimates due to backlog reduction and geographic simplification [2] - Print and Other segment revenues totaled $1.43 billion, down 12.6% year over year, while Xerox Financial Services revenues were $91 million, down 10.8% year over year [2] Operating Performance - Adjusted operating income was $33 million, representing a 72% decline year over year, with an adjusted operating margin of 2.2%, up 470 basis points year over year [4] Balance Sheet and Cash Flow - Xerox ended the quarter with cash and cash equivalents of $685 million, an increase from $519 million at the end of the previous quarter [5] - The company reported operating cash outflow of $79 million and free cash outflow of $89 million for the quarter [5] 2024 Guidance - Xerox anticipates a revenue decline of 3% to 5% on a constant currency basis for 2024, with an adjusted operating margin of at least 7.5% and free cash flow of at least $600 million [6]

Core Viewpoint - Xerox reported disappointing earnings, with a significant drop in share price following the announcement, indicating ongoing struggles in the printing and document management sector [1]. Financial Performance - Analysts expected adjusted first-quarter earnings of approximately $0.35 per diluted share and revenue of around $1.53 billion, but actual earnings were only $0.06 per diluted share with revenue at $1.5 billion [2]. - Despite the earnings miss, management maintained its full-year guidance, although the company is undergoing significant changes, including a 15% workforce reduction announced four months ago [2]. Business Transformation - Xerox is restructuring its business by adding a new global business services (GBS) group to streamline operations and reduce costs, absorbing noncore functions from existing segments [2][3]. - The company is also divesting from unprofitable markets, particularly in South America, and considering the cancellation of underperforming product lines [4]. Future Outlook - The COO indicated that revenue is expected to decline in 2024 as cost-cutting measures are implemented, but the goal is to emerge with a more profitable business model [4]. - The CFO attributed low sales and high operating expenses in the first quarter to workforce reductions and ongoing reorganization efforts [4]. Market Performance - Over the past three years, Xerox has seen a 38% decline in stock price, reflecting the challenges faced in maintaining a viable document management business [5].

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $1.5 billion, a decrease of 12.4% in actual currency and 13.2% in constant currency compared to the previous year [5] - Adjusted EPS was $0.06, down $0.43 year-over-year [5] - Free cash flow was a use of $89 million, a decrease of $159 million compared to Q1 of last year [5] - Adjusted operating margin was 2.2%, lower by 470 basis points year-over-year [5][22] Business Line Data and Key Metrics Changes - Equipment sales were $290 million, declining approximately 26% year-over-year in both actual and constant currency [24] - Print and digital services signings grew double digits, with large client revenue renewal rates above 100% [9] - Sales revenue was $1.2 billion, down 8.5% in actual currency year-over-year [25] Market Data and Key Metrics Changes - Xerox Financial Services origination volume declined 35% year-over-year [30] - XFS revenue was down 11% year-over-year due to lower finance income [31] - Print and other revenue fell 13% year-over-year, driven by lower equipment and post-sales revenue [31] Company Strategy and Development Direction - The company is undergoing a significant organizational redesign to position itself for long-term success and sustainable growth [4][6] - A new business unit-led operating model has been implemented to better align operations with economic buyers [7][14] - The company is focusing on simplifying its product offerings and geographic routes to market, including selling direct operations in Latin America [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the early momentum following the reorganization, indicating that structural changes can deliver improved revenue trajectory and operating margins [6][20] - The company expects revenue to decline by 3% to 5% in constant currency for 2024, but core business revenue is expected to be roughly flat year-over-year [34][35] - Free cash flow is projected to be at least $600 million in 2024, supported by operational efficiencies [36] Other Important Information - The company has taken significant steps to improve its cost structure, including a 15% reduction in its employee base [10][11] - A refinancing transaction was executed to extend the maturity profile of the company's debt, enhancing financial flexibility [33] Q&A Session All Questions and Answers Question: Can you elaborate on the simplification initiatives in South America and Europe? - Management explained that the simplification is based on the unique dynamics of each country, aiming to enhance client experience through partnerships rather than direct operations [39][40] Question: What is the impact of the Salesforce restructuring on equipment shipping and order pipeline? - The disruption primarily affected sales activity, but stability and order volumes improved towards the end of the quarter [52][54] Question: How much of the $100 million savings target for fiscal '24 was realized in Q1? - Management confirmed that the reinvention program is on track, with actions implemented as planned, and they are not changing their guidance for adjusted operating margin [57] Question: What is the status of geographic and offering simplification actions for the remainder of the year? - Management clarified that while major actions were taken in Q1, future actions will be more surgical and manageable [61][62] Question: How does the company plan to balance R&D spending with cost-cutting measures? - Management emphasized the importance of investing in growth areas while also driving operational efficiencies, ensuring a balanced approach to reinvestment [66][69]

Core Viewpoint - Xerox Holdings is currently ranked in the top 25% of dividend stocks, indicating strong fundamentals and attractive valuation for potential investors [1]. Group 1: Stock Performance - On Tuesday, Xerox shares traded as low as $14.035, entering oversold territory as defined by a Relative Strength Index (RSI) below 30 [1]. - The current RSI for Xerox is 25.6, significantly lower than the average RSI of 50.8 for the dividend stock universe [2]. Group 2: Dividend Yield - Xerox's recent annualized dividend is $1 per share, translating to an annual yield of 6.09% based on a recent share price of $16.42 [2]. - A declining stock price enhances the opportunity for dividend investors to achieve a higher yield [2]. Group 3: Investment Considerations - The low RSI reading may suggest that the recent selling pressure is nearing exhaustion, presenting potential buy opportunities for bullish investors [3]. - Investors are encouraged to examine Xerox's dividend history to assess the likelihood of continued dividend payments [3].