Document technology company Xerox (NASDAQ: XRX) will be reporting earnings this Thursday before market open. Here’s what investors should know.
Xerox beat analysts’ revenue expectations last quarter, reporting revenues of $1.85 billion, up 26.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and full-year revenue guidance slightly missing analysts’ expectations.
Is Xerox a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Xerox’s revenue to grow 20.6% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Xerox has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Xerox’s peers in the it services & other tech segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Applied Digital delivered year-on-year revenue growth of 581%, beating analysts’ expectations by 148%, and IBM reported revenues up 1.1%, falling short of estimates by 1.5%. Applied Digital’s stock price was unchanged after the resultsand IBM’s price followed a similar reaction.
Read our full analysis of Applied Digital’s results here and IBM’s results here.
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 5.1% on average over the last month. Xerox is down 13.9% during the same time and is heading into earnings with an average analyst price target of $2.75 (compared to the current share price of $2.73).
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