Document technology company Xerox (NASDAQ: XRX) will be reporting results this Thursday before the bell. Here’s what investors should know.
Xerox beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $1.58 billion, flat year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Xerox a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Xerox’s revenue to grow 32.6% year on year to $2.03 billion, a reversal from the 7.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.18 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Xerox has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Xerox’s peers in the it services & other tech segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Applied Digital delivered year-on-year revenue growth of 84.3%, beating analysts’ expectations by 17.6%, and IBM reported revenues up 9.1%, topping estimates by 1.4%. Applied Digital traded up 16.1% following the results while IBM was down 1.1%.
Read our full analysis of Applied Digital’s results here and IBM’s results here.
Investors in the it services & other tech segment have had steady hands going into earnings, with share prices flat over the last month. Xerox is down 4.3% during the same time and is heading into earnings with an average analyst price target of $4.50 (compared to the current share price of $3.60).
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