Xerox Holdings(US:XRX) ZACKS·2025-02-04 18:20Core Viewpoint - Xerox Holdings Corporation's stock has declined 9.5% following disappointing fourth-quarter 2024 earnings performance [1] Financial Performance - Fourth-quarter adjusted EPS was 36 cents, missing the Zacks Consensus Estimate by 30.8% and declining 16.3% year over year [2] - Total revenues were $1.5 billion, surpassing the consensus mark by 1.5% but decreasing 8.6% year over year on a reported basis; revenues declined 8% on a constant-currency basis [2] Revenue Breakdown - Post-sale revenues were $1.22 billion, down 6.7% year over year on a reported basis and 6.1% at constant currency, exceeding the estimate of $1.21 billion [3] - Equipment sales declined 14.2% year over year on a reported basis to $393 million, beating the estimate of $378.7 million [3] - The Print and Other segment's revenues totaled $1.54 billion, down 8.7% year over year, surpassing the estimate of $1.51 billion [4] - Xerox Financial Services revenues were $89 million, down 11% year over year, lagging the estimate of $98.5 million [4] - Sales revenues totaled $656 million, down 9% year over year on a reported basis [5] - Services, maintenance, and rental revenues totaled $924 million, down 7.6% year over year [5] - Financing revenues decreased 25% year over year to $33 million [5] Operating Performance - Adjusted operating income was $104 million, up 6.4% year over year; adjusted operating margin was 6.4%, up 100 basis points year over year [6] Balance Sheet and Cash Flow - Xerox ended the quarter with cash and cash equivalents of $576 million, up from $521 million at the end of the prior quarter [7] - Operating cash flow and free cash flow were $351 million and $334 million, respectively, for the quarter [7] 2025 Guidance - Xerox expects low single-digit revenue growth at constant currency and an adjusted operating margin of at least 5% [8] - The company anticipates free cash flow to be between $350 million and $400 million [8] - Xerox currently holds a Zacks Rank 5 (Strong Sell) [8]