Xerox (XRX) Reports Q3 Earnings: What Key Metrics Have to Say

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]