Xerox Stock Down Big on Earnings Miss and Cautious Outlook

Xerox Holdings Corp (NASDAQ: XRX) has announced its fiscal fourth-quarter 2024 financial results, with a revenue miss and a cautious outlook for fiscal year 2025 leaving the stock down 8.34% on the day.

The firm reported a sales decline of 8.6% year-on-year, bringing revenue to $1.613 billion. This figure missed the analyst consensus of $1.69 billion, as equipment sales decreased by 14.2%, while post-sale revenue saw a decline of 6.7%.

Adjusted earnings per share (EPS) was recorded at $0.36, which also fell short of the analyst consensus estimate of $0.67. There was a plethora of bearish fuel in the report, as gross margin decreased by 240 basis points to 31.1%. Equipment margin dropped by 500 basis points to 27.4%, and post-sale margin decreased by 160 basis points to 32.4%.

Xerox expects low single-digit revenue growth in constant currency for fiscal year 2025. The company provided free cash flow guidance ranging from $350 million to $400 million for the year.

The longer term bear trend remains in tact, with Xerox now down 54.56% on a 12 month basis. 2025 had otherwise began strongly, with the stock bouncing off 52 week lows, and remaining green 7.69% YTD, even accounting for today's decline.