Xerox Holdings Corp (NASDAQ: XRX) announced a 7.5% year-on-year decline in fiscal Q3 2024 sales, totaling $1.53 billion, falling short of analyst expectations of $1.63 billion. This marks the company's seventh consecutive quarter of missing revenue targets. Equipment sales dropped by 12.2%, while post-sale revenue decreased by 6.1%.
The adjusted earnings per share (EPS) of $0.25 also missed the consensus estimate of $0.51. Despite a stable gross margin of 32.4%, the equipment margin fell to 28.5%, although the post-sale margin rose to 33.5%. Xerox reported an adjusted operating income of $80 million, up from $68 million last year.
Looking ahead, Xerox has slashed its fiscal year 2024 revenue outlook, now expecting a 10% decline compared to a prior forecast of 5%-6%. The stock fell 16.70% in premarket trading, reflecting a 43% decline year-to-date, largely due to ongoing struggles in equipment sales.
The adjusted earnings per share (EPS) of $0.25 also missed the consensus estimate of $0.51. Despite a stable gross margin of 32.4%, the equipment margin fell to 28.5%, although the post-sale margin rose to 33.5%. Xerox reported an adjusted operating income of $80 million, up from $68 million last year.
Looking ahead, Xerox has slashed its fiscal year 2024 revenue outlook, now expecting a 10% decline compared to a prior forecast of 5%-6%. The stock fell 16.70% in premarket trading, reflecting a 43% decline year-to-date, largely due to ongoing struggles in equipment sales.