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, ...

Earnings Presentation Q3 2024 Results October 29, 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 i ...

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 ...

Influx Productions Summary Following my coverage on Xerox Holdings (NASDAQ:XRX) in Apr'24, which I recommended a sell rating due to my expectation that the business would not be able to achieve its FY24 guidance, this post is to provide an update on my thoughts on the business and stock. Since my last post, XRX's stock price has fallen much more than I had originally expected (previous PT was $11), but I am still sell-rated as I expect XRX to miss its FY24 guidance, which will lead to consensus revising the ...

Xerox Holdings Corporation’s (XRX) stock has declined 8.7% since the company’s second-quarter 2024 results. This downward trajectory can be attributed to dismal quarterly performance and weak guidance.Second quarter adjusted EPS of 29 cents missed the Zacks Consensus Estimate by 37% and declined 34% year over year. Total revenues of $1.58 billion missed the consensus mark by 3.1% and decreased 10% year over year on a reported basis. Revenues declined 9.6% on a constant-currency (CC) basis.Xerox lowered its ...

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: June 30, 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 organizat ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $1.6 billion, a decrease of 10% in both actual and constant currency. Excluding the impact of backlog fluctuations and non-strategic revenue reductions, core business revenue declined only modestly [6][26]. - Adjusted EPS was $0.29, down $0.15 year-over-year, primarily due to higher taxes and interest expenses [6][28]. - Free cash flow increased to $115 million, up $27 million compared to Q2 of the previous year [6][33]. - Adjusted operating margin was 5.4%, a decrease of 70 basis points year-over-year, attributed to lower revenue, although offset by operating cost reductions [6][27]. Business Line Data and Key Metrics Changes - Equipment sales were $356 million, down approximately 15% year-over-year, but showed improvement compared to a 26% decline in Q1 [29]. - Post-sales revenue was $1.2 billion, declining about 8% in actual and constant currency [30]. - Revenue renewal rates for large accounts remained above 100% in Q2, with new business signings higher year-to-date [10]. Market Data and Key Metrics Changes - The company is experiencing momentum in equipment orders and pipeline, with expectations for stronger revenue growth in the second half of the year [7][10]. - The transition to an indirect distribution model in certain markets is aimed at enhancing service capabilities and focusing resources on key markets [19]. Company Strategy and Development Direction - The company is implementing a multi-year reinvention strategy to simplify operations and reposition towards high-growth market opportunities in print, digital, and IT services [5][9]. - The goal is to achieve a $300 million improvement in adjusted operating income above 2023 levels by the end of 2026, with confidence in this target growing due to progress in cost reduction initiatives [8][39]. - The focus is on expanding digital and IT service penetration, leveraging existing print client relationships to drive growth in these areas [12][14]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged a short period of disruption during the implementation of the redesigned operating model but noted improvements in operating processes and financial results since then [5][6]. - Despite lowering full-year guidance, management remains confident in the long-term outlook and the ability to deliver on the three-year adjusted operating income improvement target [7][42]. Other Important Information - The company is in advanced talks to expand its forward flow agreement outside the U.S., which is expected to enhance free cash flow [16]. - The payment of a $1 per share dividend remains a key priority, with expectations for the yield to return to normalized levels as the reinvention strategy is executed [17]. Q&A Session Summary Question: Impact of reinvention initiatives on guidance - Management clarified that the guidance reduction is related to the timing of reinvention initiatives and not a change in overall strategy [45][46]. Question: Revenue guidance and timing - Management explained that the revenue decline in Q2 was influenced by backlog and non-strategic revenue, but they expect growth in the second half due to improved order velocity [52][53]. Question: Growth in digital and IT services - Management indicated that they see significant growth opportunities in digital and IT services, particularly in the mid-market, and are working on breaking out these segments in future disclosures [60][64].

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, ...