Document technology company Xerox (NASDAQ: XRX) will be reporting earnings tomorrow before the bell. Here’s what to expect.
Xerox beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $1.61 billion, down 8.6% year on year. It was a slower 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.
This quarter, analysts are expecting Xerox’s revenue to be flat year on year at $1.52 billion, improving from the 12.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 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.
Looking at Xerox’s peers in the it services & other tech segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IBM posted flat year-on-year revenue, beating analysts’ expectations by 1%, and Applied Digital reported revenues up 22.1%, falling short of estimates by 17.9%. IBM traded down 6.5% following the results while Applied Digital was also down 36%.
Read our full analysis of IBM’s results here and Applied Digital’s results here.
Investors in the it services & other tech segment have had fairly steady hands going into earnings, with share prices down 2% on average over the last month. Xerox is down 10.2% during the same time and is heading into earnings with an average analyst price target of $9.97 (compared to the current share price of $4.42).
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