NASDAQ$XRX
Xerox Corp · Q3 2024 earnings
Q3 2024 earnings · · Investor relations
Briefing
Xerox's Q3 2024 financial performance was marked by revenue decline, significant net loss due to a goodwill impairment charge, and improved adjusted operating margin driven by Reinvention initiatives.
Xerox reported a challenging third quarter with a revenue decline of 7.5% to $1.53 billion. The company experienced a GAAP net loss of $1.2 billion, primarily due to a $1.0 billion after-tax non-cash goodwill impairment charge. Despite revenue headwinds, adjusted operating margin improved by 110 basis points year-over-year, driven by Reinvention initiatives.
- Revenue decreased by 7.5% year-over-year to $1.53 billion, or 7.3% in constant currency.
- GAAP net loss was $(1.2) billion, or $(9.71) per share, including a $1.0 billion after-tax non-cash goodwill impairment charge.
- Adjusted operating margin increased by 110 basis points year-over-year to 5.2%.
- 2024 revenue guidance lowered to a decline of around 10% in constant currency.
Headline financials
Revenue & EPS history
Xerox · Revenue · Quarterly
$1.53B
Revenue by segment
Xerox · $1.78B total across 2 segments · Q4 2021
- Post Sale Revenue$1.39B-1.9%78.4%
- Equipment Sales$384M-24.7%21.6%
Forward guidance
Xerox lowered its 2024 revenue guidance to a decline of around 10% in constant currency, adjusted operating margin guidance to around 5.0%, and free cash flow guidance to a range of $450 to $500 million.
Headwinds
- Revenue guidance was lowered to reflect additional reductions in non-strategic revenue and lower-than-expected equipment sales.
- Adjusted operating income margin guidance was lowered primarily to reflect the reduction in revenue guidance.
- Free cash flow guidance was lowered to reflect the after-tax impact of lower adjusted operating income margin guidance.
- No longer expect to grow adjusted operating income $300 million above 2023 levels by 2026.
- Expect growth in adjusted operating income and a return to double-digit adjusted operating income margin over the course of our Reinvention.
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 Q3 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
| Quarter | Report date | Reaction (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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