NASDAQ$XRX

Xerox Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Xerox's financial results improved sequentially, driven by reinvention initiatives.

Xerox's Q2 2024 results show sequential improvements in adjusted operating income margin, free cash flow, and revenue trajectory, driven by strategic operating model changes. The company has revised its full-year outlook, lowering revenue and adjusted operating income guidance while reiterating its three-year adjusted operating income improvement target.

  • Revenue was $1.58 billion, a 10% decrease (9.6% in constant currency).
  • GAAP net income was $18 million, or $0.11 per share, up from the previous year.
  • Adjusted operating margin was 5.4%, a decrease of 70 basis points year-over-year.
  • Free cash flow was $115 million, an increase of $27 million year-over-year.

Headline financials

Total Revenue

$1.58B

Previous: $1.75B-10.0%
EPS

$0.11

Previous: $0.44-75.0%
Capital Expenditures

-$14M

Previous: -$11M-27.3%
Free Cash Flow

$4M

Previous: -$72M+105.6%
Net Income

$18M

Previous: -$61M+129.5%
Operating Income

-$403M

Previous: -$390M-3.3%
Gross Profit

-$45M

Previous: -$12M-275.0%
Cash & Equivalents

$485M

Previous: $477M+1.7%
Total Assets

$9.49B

Previous: $10.6B-10.2%
R&D Expense

$50M

No prior period
Stock-Based Comp

$17M

Previous: $14M+21.4%

Revenue & EPS history

Xerox · Revenue · Quarterly

$1.58B

Q2 2024-10%vs Q2 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Xerox · $1.78B total across 2 segments · Q4 2021

  • Post Sale Revenue
    $1.39B-1.9%
  • Equipment Sales
    $384M-24.7%

Forward guidance

Xerox has lowered its 2024 revenue guidance to a range of -5% to -6% in constant currency, adjusted operating income guidance to at least 6.5%, and free cash flow guidance to at least $550 million. The company maintains its three-year target of $300 million of incremental adjusted operating income above 2023 levels and a return to double-digit adjusted operating income margin by the end of 2026.

Tailwinds

  • Growing Print demand
  • Growth in Digital and IT Services in the second half of the year

Headwinds

  • Reduction in certain non-strategic revenue
  • Lower sales of paper
  • Lower financing income
  • Reinvention actions
  • Rising freight and product costs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.7%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.7%

Avg return

30 days after

50%

32 / 64 earnings

Positive

+39.2%

Q1 2026

Best reaction

-19.9%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+39.2%+68.2%+106.4%
Q4 2025-13.0%-6.9%-22.7%
Q3 2025-1.7%-8.5%-26.7%
Q1 2025-1.6%+22.7%+10.9%
Q4 2024-5.8%-12.0%-28.6%
Q3 2024-19.9%-19.4%-11.9%
Q2 2024-6.4%-5.9%-8.4%
Q1 2024-12.4%-14.7%-16.0%
Q4 2023+15.9%+15.9%+12.4%
Q3 2023-10.2%-9.6%+1.1%
Q2 2023+8.3%+2.7%-0.1%
Q1 2023+13.2%+15.3%+2.5%
Q4 2022-3.4%-6.0%-6.5%
Q3 2022-9.0%-9.5%-1.0%
Q2 2022+7.2%+9.9%+15.6%
Q1 2022-13.7%-12.0%-13.5%
Q4 2021-4.1%-2.2%-5.7%
Q3 2021-13.5%-13.5%-1.8%
Q2 2021+3.2%+2.2%-5.4%
Q1 2021-3.9%-3.7%-6.5%
Q4 2020+0.6%+1.3%+22.2%
Q3 2020-8.9%-8.1%+23.6%
Q2 2020+0.3%+5.2%+20.7%
Q1 2020+8.2%-4.4%-5.7%
Q4 2019+4.8%+1.5%-3.5%
Q3 2019+10.8%+8.7%+26.0%
Q2 2019-5.4%-9.9%-15.2%
Q1 2019-4.1%-1.0%-5.3%
Q4 2018+15.9%+17.4%+27.2%
Q3 2018+3.7%+3.7%-4.6%
Q2 2018+3.3%+4.8%+10.6%
Q1 2018-3.4%-3.4%-6.9%
Q4 2017+0.2%-4.0%-8.0%
Q3 2017-7.9%-8.4%-13.9%
Q2 2017+6.1%+5.1%+5.2%
Q1 2017+0.6%+1.8%-1.0%
Q4 2016+1.7%+2.9%+4.9%
Q3 2016+2.1%-0.6%-2.0%
Q2 2016+2.3%+0.3%-1.8%
Q1 2016-12.2%
Q4 2015+2.1%
Q3 2015-10.1%
Q2 2015-1.8%
Q1 2015-11.6%
Q4 2014-1.3%
Q3 2014-3.2%
Q2 2014+2.0%
Q1 2014+4.3%
Q4 2013-9.8%
Q3 2013-9.5%
Q2 2013-1.4%
Q1 2013-2.7%
Q4 2012+7.4%
Q3 2012+0.1%
Q2 2012+0.0%
Q1 2012+0.9%
Q4 2011+3.0%
Q3 2011-8.5%
Q2 2011+4.5%
Q1 2011+2.1%
Q4 2010+2.0%
Q3 2010+2.0%
Q2 2010-4.4%
Q1 2010+3.1%

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