Core Insights - Xerox Holdings Corporation reported a quarterly loss of $0.1 per share, missing the Zacks Consensus Estimate of $0.15, and a significant decline from earnings of $0.36 per share a year ago, resulting in an earnings surprise of -168.97% [1] - The company generated revenues of $2.03 billion for the quarter ended December 2025, which was 2.6% below the Zacks Consensus Estimate and an increase from $1.61 billion year-over-year, but has not surpassed consensus revenue estimates in the last four quarters [2] - Xerox shares have underperformed the market, losing approximately 1.7% since the beginning of the year compared to the S&P 500's gain of 1.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $1.9 billion, and for the current fiscal year, it is $1.01 on revenues of $7.93 billion [7] - The estimate revisions trend for Xerox was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Office Supplies industry, to which Xerox belongs, is currently in the top 40% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Group 1 - Craig Gunckel has been appointed as the new CEO of The ODP Corporation following the completion of its acquisition by Atlas Holdings, which is valued at approximately $1 billion [1][2] - The acquisition has received all necessary regulatory approvals and ODP is now a private and independently operated company, leading to its stock being delisted from the Nasdaq [2] - Gunckel brings nearly 30 years of leadership experience in the paper and packaging industries, having previously served as CEO of Iconex, a company owned by Atlas [3] Group 2 - The ODP Corporation is undergoing a slow turnaround, shifting focus from retail to business-to-business operations, although recent performance has shown only modest improvement in the B2B segment while retail has continued to decline [4] - Analysts from UBS noted that significant progress in ODP's turnaround will take time, indicating a cautious outlook on the company's recovery [5] - Under new ownership, ODP aims to enhance agility and focus on its core businesses, Office Depot OfficeMax and ODP Business Solutions, with a commitment to sustainable and profitable growth [6]

Core Insights - Xerox Holdings (XRX) reported mixed third-quarter 2025 results, with earnings exceeding the Zacks Consensus Estimate but revenues falling short [1][10] - The company's shares have declined 2.6% since the earnings release on October 30, reflecting market disappointment with the results [1] Financial Performance - Adjusted operating income for the quarter was $65 million, down 18.8% year-over-year, with an adjusted operating margin of 3.3%, a decrease of 1.9 basis points year-over-year [7] - Quarterly adjusted earnings were 20 cents per share, surpassing estimates by 4% but down 20% from the previous year [3][10] - Revenues totaled $1.96 billion, missing estimates by 4.5% but showing a year-over-year increase of 28.3% [3][10] Revenue Breakdown - Post-sale revenues reached $1.58 billion, up 32.7% year-over-year but below the estimate of $1.72 billion [5] - Equipment sales increased by 13% year-over-year to $383 million, exceeding the estimate of $338.5 million [5] - The Print and Other segment generated revenues of $1.74 billion, up 20.6% year-over-year, beating the estimate of $1.42 billion [5] Guidance and Outlook - For 2025, the adjusted operating margin is projected to be approximately 3.5-4.5%, with a midpoint of 4% lower than the previous estimate of 4.5% [2] - Free cash flow is anticipated to be between $150-$250 million, with a midpoint of $200 million, down from the prior view of $250 million [2] - Operating cash flow for 2025 is expected to be approximately $245 million, reduced from the previous estimate of $345 million [2] Market Performance - Xerox's shares have depreciated 66.1% over the past year, contrasting with a 51.2% decline in the Office Supplies industry and a 15.6% rise in the S&P 500 [4]

Financial Data and Key Metrics Changes - Third quarter sales decreased by 9%, with a favorable foreign exchange impact of almost 2% [13] - Gross profit for the third quarter was $127 million, a decrease of 8%, but the margin rate improved by 50 basis points to 33% [13][14] - Adjusted operating income for the third quarter was $39 million compared to $45 million a year ago [14] - Adjusted EPS was in line with expectations despite lower sales [5][13] - Year-to-date adjusted free cash flow was $42 million, including $17 million from the sale of two owned facilities [17] Business Line Data and Key Metrics Changes - In the Americas segment, comparable sales declined by 12%, impacted by lower demand and timing for Nintendo Switch 2 accessory sales [15] - The international segment saw comparable sales decline by 7%, with underlying demand down in Europe, particularly in Germany, the UK, and France [16] - Sales in the technology accessories category were modestly down but expected to return to growth in the fourth quarter due to new product launches [9][24] Market Data and Key Metrics Changes - Sales for the back-to-school season in the U.S. and Canada were down mid-single digits, influenced by purchasing decisions in response to tariffs [6][7] - In Latin America, sales were weaker than expected due to a constrained consumer, with trade down prevalent [7][8] - Demand in Europe was soft, while Australia and Asia showed increases, indicating mixed demand across international markets [9] Company Strategy and Development Direction - The company is focused on a $100 million multi-year cost reduction program, realizing an additional $10 million in savings in the third quarter [5] - There is a commitment to pivot the business towards higher growth categories while streamlining operations and optimizing the cost structure [12] - The company is evaluating strategic opportunities, including potential acquisitions and licensing agreements, to reposition its product portfolio into faster-growing categories [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in seeing improved sales trends in the fourth quarter, driven by the holiday season and new product launches [24][18] - The evolving tariff environment and cautious consumer spending remain challenges, but management believes they are well-positioned to navigate these dynamics [18][19] - The company reaffirmed its sales and adjusted EPS guidance for the full year, expecting reported sales to be down 7% to 8% [18] Other Important Information - The company has no debt maturities until 2029 and maintains a focus on productivity savings and cost management [19] - The company returned $7 million to shareholders in the form of dividends during the quarter [17] Q&A Session Summary Question: What underpins your confidence for fourth quarter improvement? - Confidence is based on expected growth in technology accessories and new product launches, along with a shift in timing for price increases and orders from Q3 to Q4 [24][25] Question: Can you elaborate on the trade-down dynamic? - Trade down is observed across most geographies, but the company is well-positioned with a brand portfolio that caters to various price points [29] Question: Are there plans for additional acquisitions? - The company is always evaluating accretive acquisitions and licensing agreements to enhance its product portfolio [31] Question: Have you seen any pickup in Brazil for back-to-school? - Results are consistent with expectations, with customers deferring purchases later into the quarter [34] Question: How do you manage product cannibalization with new launches? - New products are generally introduced at higher gross margin averages, and the company aims to minimize cannibalization while providing value across price points [35][36] Question: What opportunities exist for channel expansion? - The company sees opportunities in verticals like healthcare and is focusing on developing relationships with end users [37] Question: How meaningful is the revenue shift from Q3 to Q4? - The shift is significant enough to impact guidance, but specific details are not publicly defined [40][42] Question: Were tariff-related price increases passed through dollar-for-dollar? - The goal was to pass through price increases, but not all were implemented in Q3; margin improvement was also due to cost reductions [50] Question: What gives you confidence in Brazil's market despite challenges? - There have been modest improvements in trends, but caution remains as the back-to-school season progresses [52]

Core Insights - Xerox Holdings Corporation reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, but down from $0.25 per share a year ago, indicating an earnings surprise of +400.00% [1] - The company posted revenues of $1.96 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 4.5%, compared to $1.53 billion in the same quarter last year [2] - Xerox shares have declined approximately 59.3% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The future performance of Xerox's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $2.16 billion, while the estimate for the current fiscal year is -$0.20 on revenues of $7.25 billion [7] Industry Context - The Office Supplies industry, to which Xerox belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Core Insights - The "Double Eleven" e-commerce promotion will officially start on October 9 at 20:00, coinciding with the release of new "national subsidies" for consumers [2] - A total of 690 billion yuan in special long-term bonds has been allocated to support the consumption of old-for-new policies, completing the annual target of 300 billion yuan in central funding [2] - The implementation of the old-for-new policy has led to significant consumer engagement, with 330 million people applying for subsidies from January to August, resulting in over 2 trillion yuan in sales [2] Group 1 - The new round of "national subsidies" is expected to enhance the attractiveness of products during the "Double Eleven" sales event [2] - The government aims to ensure effective use of the subsidy funds while preventing fraudulent claims and ensuring product quality and price regulation [2] - Retail sales of home appliances, audio-visual equipment, cultural office supplies, furniture, and communication devices have seen year-on-year growth rates of 28.4%, 22.3%, 22.0%, and 21.1% respectively, contributing to a 4.6% increase in total retail sales of consumer goods [2]

Group 1 - ODP Corporation, owner of Office Depot and OfficeMax, has agreed to be taken private by Atlas Holdings for approximately $1 billion, with Atlas paying $28 per share, representing a 34% premium to the closing share price on September 19 [1][2] - The transaction is expected to close by the end of the year, pending regulatory and shareholder approvals [2] - ODP's CEO highlighted that Atlas brings industry understanding and operational expertise that will enhance ODP's B2B growth initiatives [3] Group 2 - Investors view the deal as positive but surprising due to ODP's history of unsuccessful merger attempts with Staples, which were blocked by the Federal Trade Commission [4][5] - ODP has faced pressure from activist investors and increased competition from e-commerce companies like Amazon and Walmart, leading to a decline in its market cap [6] - ODP operates around 830 stores, indicating its significant presence in the office supply retail market [6]

Financial Performance - Sales decreased to $1586 million from $1717 million [22] - Operating income increased to $9 million from $0.4 million [22] - Adjusted operating income decreased to $25 million from $33 million [22] - Adjusted EBITDA decreased to $47 million from $57 million [22] - Adjusted free cash flow increased to $13 million from $5 million [10, 22] - ODP Business Solutions revenue decreased 6% year-over-year [31] - Office Depot comparable store sales improved by approximately 200 basis points year-over-year [10, 28] Strategic Initiatives - The company is executing its "Optimize for Growth" plan to accelerate B2B growth [9, 15] - The company is expanding into the hospitality market, a $16 billion+ market segment [13, 14] - Veyer's revenue from third-party customers increased 90% year-over-year to $19 million [37] Outlook - The company expects continued improvements in performance trends and strong adjusted free cash flow generation in the second half of the year [8] - The company anticipates generating over $115 million in adjusted free cash flow for the full year 2025 [44]

Core Insights - Xerox Holdings (XRX) reported disappointing second-quarter 2025 results, with both earnings and revenues falling short of the Zacks Consensus Estimate [1][3] - The company's shares have declined 2.8% since the earnings release on July 31, and have depreciated 59.5% over the past year [1][3] Financial Performance - Xerox reported a quarterly adjusted loss of $0.64 per share, missing the consensus estimate of $0.10, and a significant decrease from the previous year's profit [3][7] - Revenues totaled $1.58 billion, which was 0.8% below the consensus estimate and a decline of 0.13% year-over-year [3][7] - Post-sale revenues were $1.24 billion, up 1.5% year-over-year but below the estimate of $1.27 billion [4] - Equipment sales decreased by 5.6% year-over-year to $336 million, slightly exceeding the estimate of $330.9 million [4] - The Print and Other segment's revenues fell 8.6% year-over-year to $1.37 billion, missing the estimate of $1.46 billion [4] Operating Metrics - Adjusted operating income was $59 million, down 30.6% year-over-year, with an adjusted operating margin of 3.7%, a decrease of 170 basis points [8] - Negative free cash flow was reported at $30 million, with cash and cash equivalents at $449 million, down from $576 million at the end of 2024 [9] Future Guidance - For 2025, Xerox anticipates revenue growth of 16%-17% at constant currency, with an adjusted operating margin projected at approximately 4.5% [10] - The company expects free cash flow to be around $250 million and operating cash flow to be approximately $345 million, with capital expenditures anticipated at $95 million [10]

Core Viewpoint - Acco Brands reported quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.29 per share, and down from $0.37 per share a year ago, indicating a -3.45% earnings surprise [1] Financial Performance - The company posted revenues of $394.8 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.28%, but down from $438.3 million year-over-year [2] - Over the last four quarters, Acco has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Performance - Acco shares have lost about 28% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The current Zacks Rank for Acco is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.26 on revenues of $382.43 million, and $0.94 on revenues of $1.53 billion for the current fiscal year [7] - The estimate revisions trend for Acco was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Office Supplies industry is currently in the top 39% of over 250 Zacks industries, suggesting that it has a favorable outlook compared to the bottom 50% [8]