Xerox Holdings (XRX) Stock Loses 2.6% Post Q1 Earnings Miss

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]