Core Viewpoint - A class action lawsuit has been filed against Xerox Holdings Corporation for allegedly making materially false and misleading statements regarding its business operations and financial performance during the class period from January 25, 2024, to October 28, 2024 [1][5]. Financial Performance - For Q2 2024, Xerox reported a revenue decline of 12.4% year-over-year to $1.50 billion, with a net loss of $113 million, down $184 million year-over-year. Equipment sales fell 25.8% year-over-year to $290 million [3]. - For Q3 2024, Xerox's revenue decreased by 7.5% year-over-year to $1.53 billion, with a significant net loss of $1.2 billion, down $1.3 billion year-over-year. Equipment sales also declined by 12.2% year-over-year to $339 million [4]. Operational Challenges - The company attributed the revenue decline to "geographic simplification" and acknowledged that its "Reinvention" plan initially disrupted sales operations but expected improvements in equipment order momentum [3]. - The COO indicated that lower-than-expected sales force productivity and delays in launching new products contributed to sales underperformance, citing a "forecasting issue" regarding older product sell-through [4]. Allegations in Lawsuit - The lawsuit claims that Xerox failed to disclose several material adverse facts, including disruptions in salesforce productivity due to a workforce reduction and the impact on product launch timelines, which misled investors about the company's operational health and future prospects [5].

SAN DIEGO, Nov. 20, 2024 /PRNewswire/ -- Robbins LLP announces that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Xerox Holdings Corporation (NASDAQ: XRX) securities between January 25, 2024 and October 28, 2024. Xerox and its subsidiaries offer workplace technology that integrates hardware, services, and software for enterprises in the Americas, and internationally. For more information, submit a form, email attorney Aaron Dumas, Jr., or give ...

Core Viewpoint - A securities class action lawsuit has been filed against Xerox Holdings Corporation for allegedly making materially false and misleading statements regarding its business operations and prospects during the specified class period from January 25, 2024, to October 28, 2024 [1][2]. Group 1: Allegations of Misleading Statements - The lawsuit claims that Xerox's management failed to disclose significant adverse facts about the company's business, including disruptions in salesforce productivity due to a large workforce reduction and reorganization [2]. - It is alleged that these disruptions led to a lower rate of sell-through of older products and delays in launching key products, which would likely result in lower sales and revenue for the company [2]. - The positive statements made by the defendants regarding the company's business and prospects were deemed materially misleading and lacked a reasonable basis [2]. Group 2: Investor Information - Investors who acquired shares of Xerox during the class period are encouraged to contact the law firm representing the class action before the lead plaintiff motion deadline on January 20, 2025 [3].

Core Points - A shareholder class action lawsuit has been filed against Xerox Holdings Corporation alleging materially false and misleading statements regarding the company's business and operations [1] - The lawsuit claims that a large workforce reduction led to a reorganization of the salesforce, disrupting productivity and resulting in lower sales and revenue [1] - Specific allegations include a lower rate of sellthrough of older products and delays in launching key products due to difficulties in clearing out older inventory [1] Legal Context - Shareholders who purchased Xerox shares between January 25, 2024, and October 28, 2024, and suffered significant losses are encouraged to discuss their legal rights [2] - The deadline to request to be appointed lead plaintiff in the case is January 20, 2025 [3] - Holzer & Holzer, LLC is representing shareholders and has a history of recovering significant amounts for investors affected by corporate misconduct [3]

NEW YORK, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Xerox Holdings Corporation (“Xerox” or the “Company”) (NYSE:XRX) on behalf of Xerox stockholders. Our investigation concerns whether Xerox has violated the federal securities laws and/or engaged in other unlawful business practices. Click here to participate in the action. On October 29, 2024, Xerox issued a press release announcing the Compa ...

Revenue Performance - Equipment sales in Q3 2024 declined by 12.2% to $339 million compared to Q3 2023, driven by backlog fluctuations, delayed product launches, and lower sales force productivity[128] - Post-sale revenue in Q3 2024 decreased by 6.1% to $1.2 billion, primarily due to lower outsourcing and service revenue, and intentional reductions in non-strategic revenue[128] - Total revenue for Q3 2024 was $1.53 billion, a 7.5% decline from Q3 2023, with a 0.2% unfavorable currency impact[134] - Print and Other segment revenue declined by 7.5% to $1.457 billion in Q3 2024, while Xerox Financial Services (XFS) revenue decreased by 10.2% to $88 million[135] - Total revenue for Q3 2024 decreased by 7.5% to $1.528 billion compared to Q3 2023, with a 0.2% adverse currency impact[137] - Equipment sales revenue for Q3 2024 decreased by 12.2% to $339 million, primarily due to delayed product launches and lower sales productivity[137][140] - Post-sale revenue for Q3 2024 decreased by 6.1% to $1.189 billion, with a 0.4% adverse currency impact, driven by declines in contractual print services and IT endpoint device placements[137][138] - Financing revenue for Q3 2024 decreased by 17.4% to $38 million, reflecting a reduction in average finance receivables balance[138] - Total revenue for the nine months ended September 30, 2024, decreased by 10.0% to $4.608 billion compared to the same period in 2023[137] - Equipment sales revenue for the nine months ended September 30, 2024, decreased by 17.7% to $985 million, impacted by unfavorable product mix and backlog fluctuations[137][140] - Post-sale revenue for the nine months ended September 30, 2024, decreased by 7.7% to $3.623 billion, driven by lower contractual print services and the termination of Fuji royalty income[137][138] - Supplies, paper, and other sales revenue for Q3 2024 decreased by 3.5% to $249 million, with a 1.2% adverse currency impact[138] - Services, maintenance, and rentals revenue for Q3 2024 decreased by 6.2% to $902 million, primarily due to declines in contractual print services[138] - Print and Other segment revenue decreased by 7.5% in Q3 2024 compared to Q3 2023, and by 10.0% for the nine months ended September 30, 2024 compared to the prior year period[164][165] - Equipment sales revenue decreased by 12.1% in Q3 2024 and by 17.7% for the nine months ended September 30, 2024 compared to the prior year periods[165][166] - Post sale revenue decreased by 5.8% in Q3 2024 and by 7.4% for the nine months ended September 30, 2024 compared to the prior year periods[165][166] - Entry product group revenue decreased by 5.4% in Q3 2024 and by 14.9% for the nine months ended September 30, 2024 compared to the prior year periods[167] - Mid-range product group revenue decreased by 13.8% in Q3 2024 and by 16.6% for the nine months ended September 30, 2024 compared to the prior year periods[167] - High-end product group revenue decreased by 14.9% in Q3 2024 and by 26.1% for the nine months ended September 30, 2024 compared to the prior year periods[167] - XFS segment revenue decreased by 10.2% in Q3 2024 compared to Q3 2023, and by 11.0% for the nine months ended September 30, 2024[171][172] - Financing revenue decreased by 17.4% in Q3 2024 compared to Q3 2023, and by 19.7% for the nine months ended September 30, 2024[171][172] - Other Post sale revenue decreased by 2.1% in Q3 2024 compared to Q3 2023, and by 0.7% for the nine months ended September 30, 2024[171][172] - Revenue for the three months ended September 30, 2024, was $1.528 billion, compared to $1.652 billion for the same period in 2023[198] - Revenue for 2024 was $4.608 billion, a decrease from $5.121 billion in 2023[199] Profitability and Margins - Net loss in Q3 2024 was $(1,205) million, compared to a net income of $49 million in Q3 2023, largely due to a $1.1 billion goodwill impairment charge[134] - Adjusted net income for Q3 2024 was $34 million, a decrease of $43 million from Q3 2023, reflecting lower revenue and higher expenses[134] - Gross margin for Q3 2024 remained flat at 32.4% compared to Q3 2023, primarily due to lower revenue, higher transportation costs, and unfavorable equipment mix, partially offset by cost and productivity actions[142] - Equipment gross margin for Q3 2024 decreased by 2.5 percentage points to 28.5% compared to Q3 2023, driven by lower revenue, higher transportation costs, and the release of a tariff accrual in the prior year[142] - Post-sale gross margin for Q3 2024 increased by 0.6 percentage points to 33.5% compared to Q3 2023, reflecting benefits from cost and productivity actions and favorable currency[142] - Adjusted operating income for Q3 2024 increased by $12 million to $80 million compared to Q3 2023, with the margin improving by 1.1 percentage points to 5.2%[141] - Third quarter 2024 pre-tax loss margin was (71.1)%, a 75.0-percentage point increase from third quarter 2023, primarily due to a $1,058 million pre-tax non-cash goodwill impairment charge[155] - Third quarter 2024 adjusted operating income margin increased by 1.1-percentage points to 5.2%, reflecting cost and productivity actions and lower selling, administrative, and general expenses[157] - Total Print and Other segment margin increased by 0.6 percentage points to 4.7% in Q3 2024 compared to Q3 2023[170] - Total Print and Other segment margin decreased by 1.4 percentage points to 4.2% for the nine months ended September 30, 2024 compared to the prior year period[170] - XFS segment margin increased by 10.7 percentage points to 14.8% in Q3 2024 compared to Q3 2023[174] - Adjusted profit for 2024 was $198 million, with an adjusted margin of 4.3%, compared to $293 million and 5.7% in 2023[199] - Pre-tax loss for 2024 was $1.212 billion, representing a margin of -26.3%, compared to a pre-tax income of $60 million and a margin of 1.2% in 2023[199] Cash Flow and Debt - Cash flows from operating activities for the nine months ended September 30, 2024, were $160 million, a decrease of $137 million from the prior year period[136] - Operating cash flows for 2024 are now expected to be between $490 million and $540 million, compared to prior guidance of at least $600 million[136] - Total cash, cash equivalents, and restricted cash decreased by $27 million to $590 million as of September 30, 2024[175][176] - Net cash provided by operating activities decreased by $137 million to $160 million for the nine months ended September 30, 2024[176][177] - Total debt increased to $3,271 million as of September 30, 2024, with $1,963 million allocated to finance assets[175][182] - Total finance assets, net decreased by $531 million to $2,244 million as of September 30, 2024[183] - Capital expenditures for 2024 are now expected to be approximately $40 million, down from previous guidance of approximately $50 million[175] - Total debt decreased slightly from $3,277 million in December 2023 to $3,271 million in September 2024, with core debt increasing from $849 million to $1,308 million[185] - Principal debt maturities over the next five years total $3,315 million, with $2,038 million from Xerox Holdings Corporation and $1,129 million from Xerox Corporation[186] Restructuring and Costs - Restructuring and related costs for Q3 2024 increased to $56 million compared to $10 million in Q3 2023, primarily due to strategic actions related to the company's Reinvention[145] - Worldwide employment decreased by approximately 2,800 to 17,300 as of September 30, 2024, primarily due to workforce reduction decisions and net attrition[145] - Bad debt provision for the nine months ended September 30, 2024 increased by $18 million to $35 million compared to the prior year period, reflecting higher provisions for aged accounts receivables[144] - Third quarter 2024 non-financing interest expense increased by $17 million to $31 million compared to third quarter 2023, primarily due to higher interest rates on new debt issued in the first quarter of 2024[147] - Third quarter 2024 non-service retirement-related costs increased by $21 million to $25 million compared to third quarter 2023, driven by higher actuarial losses and lower expected return on plan assets[148] - Xerox reported restructuring and related costs of $56 million for the three months ended September 30, 2024[198] - The company recorded amortization of intangible assets of $10 million for the three months ended September 30, 2024[198] - Restructuring and related costs for 2024 were $107 million, compared to $35 million in 2023[199] - Amortization of intangible assets for 2024 was $30 million, compared to $33 million in 2023[199] - Divestitures in 2024 resulted in a cost of $51 million, with no comparable cost in 2023[199] - PARC donation in 2023 was $132 million, with no comparable donation in 2024[199] - Other expenses, net for 2024 were $120 million, compared to $33 million in 2023[199] - Inventory-related impact due to the exit of certain production print manufacturing operations was $44 million in 2024, with no comparable impact in 2023[199] Strategic Agreements and Investments - Xerox entered into a seven-year agreement with TCS for technology services consolidation, cloud migration, and GenAI integration, with a spending commitment of $490 million[188][190] - Xerox signed a seven-year agreement with Microsoft for Azure cloud platform services, committing $125 million[188][190] - Xerox committed $50 million to SAP for a cloud-based digital ERP platform over seven years[188][190] - Xerox entered into a five-year agreement with Verizon for Network as a Service (NaaS) solutions, with a spending commitment of $85 million[188][190] - Xerox renewed its shared services arrangement with HCL, committing $590 million over five years[189][190] Financial Risk Management - Xerox's financial risk management includes hedging against foreign currency and interest rate risks using derivative instruments[191] - Adjusted earnings measures exclude restructuring costs, amortization of intangible assets, and non-service retirement-related costs to provide a clearer view of operational performance[192][193] - Adjusted operating income and margin exclude non-financing interest expense and other non-operating costs to better evaluate business trends[194] Other Financial Metrics - Adjusted net income for the three months ended September 30, 2024, was $34 million, with an adjusted diluted EPS of $0.25[195] - Xerox recorded a goodwill impairment charge of $1.058 billion pre-tax ($1.015 million after-tax) for the three months ended September 30, 2024[195] - The company established a deferred tax asset valuation allowance of $161 million, resulting in a tax expense charge of $1.29 per diluted share for the three months ended September 30, 2024[195] - Adjusted operating income for the three months ended September 30, 2024, was $80 million, with an adjusted operating margin of 5.2%[198] - Adjusted effective tax rate for the three months ended September 30, 2024, was 27.7%, compared to 7.2% for the same period in 2023[196] - Adjusted pre-tax income for the three months ended September 30, 2024, was $47 million, compared to $83 million for the same period in 2023[196] - Net loss for the three and nine months ended September 30, 2024 was $1.3 billion, including a non-cash goodwill impairment charge of $1.058 billion pre-tax[199]

Xerox Holdings Corporation’s (XRX) stock has declined 4% since the company’s second-quarter 2024 results. This downward trajectory can be attributed to dismal quarterly performance and weak guidance.See Zacks Earnings Calendar to stay ahead of market-making news.Third-quarter adjusted EPS of 25 cents missed the Zacks Consensus Estimate by 52.8% and declined 45.7% year over year. Total revenues of $1.53 billion missed the consensus mark by 3.6% and decreased 7.5% year over year on a reported basis. Revenues ...

Core Viewpoint - The article provides an update on Xerox Holdings (NASDAQ: XRX) following a previous recommendation to sell due to expectations of missing FY24 guidance, emphasizing a fundamentals-based approach to value investing [1] Group 1: Investment Philosophy - The company disagrees with the notion that low multiple stocks are inherently cheap, focusing instead on long-term durability and affordability [1] - A preference is shown for companies with steady long-term growth, no cyclicality, and a strong balance sheet [1] - The article highlights the risk of overpaying for successful companies, underscoring the importance of valuation [1] Group 2: Market Outlook - There are situations where the potential for growth is so significant that immediate price considerations become less critical [1]

Xerox Holdings Corporation (NASDAQ: XRX ) recently reported its Q3 results , which were met very negatively by the investment community. I wanted to take a look at the numbers and give some comments on where I thinkMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Anal ...

Core Insights - Xerox Holdings Corporation reported $1.53 billion in revenue for Q3 2024, a year-over-year decline of 7.5% [1] - The company's EPS for the same period was $0.25, down from $0.46 a year ago, reflecting a significant EPS surprise of -52.83% compared to the consensus estimate of $0.53 [1] Revenue Breakdown - Financing revenues were $38 million, slightly below the estimated $39.40 million [3] - Services, maintenance, and rentals generated $902 million, compared to the estimated $958.48 million, marking a -6.2% year-over-year change [3] - Sales revenues were reported at $588 million, slightly above the estimated $587.75 million, with an -8.7% year-over-year decline [3] - Supplies, paper, and other sales reached $249 million, exceeding the average estimate of $234.74 million, representing a -3.5% year-over-year change [3] - Equipment sales totaled $339 million, below the estimated $353.01 million, reflecting a -12.2% year-over-year decline [3] - Other equipment sales were reported at $5 million, significantly above the estimate of $2.95 million, showing a +66.7% year-over-year increase [3] - High-end equipment sales were $57 million, below the estimated $61.56 million, with a -14.9% year-over-year change [3] - Entry-level equipment sales were $53 million, slightly above the estimated $49.56 million, representing a -5.4% year-over-year change [3] - Post-sale revenue was $1.19 billion, below the estimated $1.24 billion, marking a -6.1% year-over-year decline [3] - Mid-range equipment sales were reported at $224 million, below the estimated $244.13 million, reflecting a -13.9% year-over-year change [3] Stock Performance - Xerox shares have returned -1% over the past month, underperforming the Zacks S&P 500 composite, which increased by +1.7% [4] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [4]