Quad/Graphics (QUAD) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a ...

Core Viewpoint - Samfine Creation Holdings Group Limited is transitioning from a traditional printing service provider to a creative partner by integrating manufacturing capabilities with content and intellectual property collaboration, aiming to enhance its market position and product offerings [2][6]. Group 1: Company Overview - Samfine is an established one-stop printing service provider with over 20 years of experience, primarily operating in Hong Kong and the PRC, offering a wide range of printed products including books, novelty items, and packaging [1][6]. - The company is committed to extending its industrial chain upstream, leveraging its existing printing capabilities to explore new business avenues [1][6]. Group 2: Strategic Direction - The company is pursuing a "Printing + Original IP" strategy, viewing printing technology as a medium for culture and art, and has initiated a collaboration with renowned comic artist Mr. Jin Cheng to create collectible products [3][4]. - This collaboration aims to bring Chinese animation art to broader audiences, with initial products including stationery, clothing, and gift items that combine original artwork with precision printing [4][5]. Group 3: Market Response and Future Plans - Early market feedback on the new product line has been positive, particularly in Southeast Asian markets, indicating a successful blend of Eastern aesthetics with contemporary design [5]. - Looking ahead, the company plans to deepen its "Printing + IP" strategy by collaborating with more artists and expanding into lifestyle product categories while building a global distribution network [6].

Core Insights - Redington India, in partnership with HP, has inaugurated a Centre of Excellence (CoE) for printing technologies in Chennai, aimed at showcasing HP Indigo's digital printing solutions and providing professional training and industry consulting [1][2]. Group 1: Centre of Excellence Overview - The CoE is designed to educate brands and print buyers on effective use of digital printing to enhance competitiveness in the market [1]. - The facility will feature live demonstrations of the HP Indigo 18K digital press (B2 format) and the HP Indigo 7K digital press (A3 format), along with finishing equipment and a full suite of prepress, post-press, and web-to-print solutions [5]. Group 2: Strategic Importance - The CoE is launched at a time when India is experiencing rapid economic growth and increasing demand for high-quality, personalized print, making it a strategic initiative to support customers [3]. - The initiative is expected to deepen customer engagement, expand solution-led revenues, and accelerate the adoption of advanced digital printing technologies, including HP Indigo and HP Industrial 3D Printing solutions [4].

Core Insights - Xerox's fourth-quarter revenue was $2.03 billion, reflecting a year-over-year increase of approximately 26% in actual currency and 24% in constant currency, driven by acquisitions of Lexmark and ITsavvy, although pro forma revenue declined by 9% [2][6][14] - The company reported an adjusted operating margin of 5%, down 140 basis points from the previous year, and free cash flow of $184 million, a decrease of $150 million year-over-year [1][6][14] - Management provided a 2026 outlook with revenue expectations exceeding $7.5 billion, adjusted operating income between $450 million and $500 million, and a focus on deleveraging [5][17] Financial Performance - Adjusted gross margin was 29.3%, down 230 basis points year-over-year, primarily due to tariff and product cost inflation [7] - The adjusted tax rate increased to 147.1% from 32.9% a year earlier, attributed to geographic mix and limitations on benefiting from losses in certain jurisdictions [7] - For the full year 2025, Xerox reported revenue of $7.02 billion, a 13% increase in actual currency, while excluding acquisitions, revenue declined about 8% [14] Segment Performance - In the print segment, equipment revenue was $485 million, up 23% as reported, but down about 10% on a pro forma basis [8][9] - IT Solutions revenue surged by 39% year-over-year, with gross margin improving to 22.7%, attributed to the inclusion of ITsavvy [11][12] - Post-sale revenue in the print segment was $1.39 billion, up 25% as reported, but down 9% on a pro forma basis [10] Strategic Initiatives - The company is focusing on AI initiatives and integration synergies, with plans to deploy AI across service and collections to enhance efficiency [13][15] - Xerox is launching a unified brand for IT Solutions and introducing new offerings like the "Xerox TriShield 360 Cyber Solution" for SMB customers [15] - The company has secured a significant partnership with U.K. grocery retailer Morrisons, expanding its operational print infrastructure and marketing communications [15] Balance Sheet and Capital Management - Xerox ended the quarter with $565 million in cash and cash equivalents, and total debt of $4.2 billion, down $160 million sequentially [19] - The company plans to issue a special pro rata distribution of warrants to shareholders, framed as a balance sheet-friendly way to reward shareholders while providing bondholders with optionality [20]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $2.03 billion, an increase of approximately 26% in actual currency and 24% in constant currency, primarily due to the acquisitions of Lexmark and ITsavvy. Pro forma revenue declined by 9% [3] - For the full year, revenue reached $7.02 billion, up roughly 13% in actual currency and 12% in constant currency, but declined approximately 8% excluding acquisition benefits. Adjusted loss per share was $0.60, down $1.57 year over year [4] - Free cash flow for Q4 was $184 million, a decrease of $150 million year over year, while for the full year, it was $133 million, which was above the guidance of $107 million [3][27] Business Line Data and Key Metrics Changes - In the Print and Other segment, Q4 equipment revenue was $485 million, up 23% as reported, but down approximately 10% on a pro forma basis. Legacy Xerox equipment revenue declined 14% in constant currency [22][23] - Print post-sale revenue was $1.39 billion, up 25% as reported, but down 9% on a pro forma basis. Excluding reinvention effects, pro forma post-sale revenue declined approximately 5% [23] - IT Solutions revenue increased by 39% year-over-year, reflecting the full inclusion of ITsavvy for the entire quarter. Pro forma gross billings increased by 13% year-over-year [24] Market Data and Key Metrics Changes - The company noted that macroeconomic challenges, including tariffs and increased product costs, continued to impact performance, particularly in the print equipment sales [3][8] - The company is experiencing a firming of demand in the IT solutions sector, with more than $60 million of pipeline creation in 2025 [24] Company Strategy and Development Direction - The company is focused on three strategic priorities: executing reinvention, realizing acquisition benefits, and maintaining balance sheet strength [8] - The integration of Lexmark and ITsavvy is expected to unlock tangible commercial and operational benefits, with a unified sales organization anticipated to enhance market reach [11][12] - The company is also investing in AI capabilities to drive efficiencies and improve customer experience, including the establishment of an AI center of excellence [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving business trends despite ongoing macroeconomic headwinds, with expectations for a stronger 2026 [3][4] - The company anticipates that many cost-related headwinds will begin to ease, while new product launches and a unified IT solutions organization will provide meaningful tailwinds [8][71] - Management highlighted the importance of navigating challenges related to memory price increases and their impact on costs across various business lines [5][6] Other Important Information - The company announced a special pro rata distribution of warrants to shareholders, which is seen as a balance sheet-friendly way to reward loyalty and provide bondholders with options to participate in equity [31] - The company plans to use excess free cash flow for debt repayment, with a medium-term target of approximately 3x trailing 12 months EBITDA [28][29] Q&A Session Summary Question: Are orders returning to normal post-government shutdown? - Management indicated that they are seeing growth opportunities in government sectors and that the strategy of acquiring ITsavvy and Lexmark is working to expand their portfolio [34][36] Question: What is the impact of memory prices on the ITsavvy business? - Management clarified that memory price increases are creating uncertainty across all industries, but they are working to help clients navigate these challenges through various service models [36][39] Question: How is the company prioritizing various strategic initiatives amidst challenges? - Management emphasized that the reinvention strategy and acquisitions are progressing well, with a focus on integration and leveraging existing relationships to drive growth [44][47] Question: How does the company protect against potential challenges in IT services? - Management outlined strategies to extend asset life and shift towards software as a service to mitigate risks associated with rising costs [51][55] Question: What are the expectations for finance receivable sales in 2026? - Management expects to reduce finance receivables to about $1 billion by year-end 2026, with a larger portion anticipated in the second half of the year [61]

Earnings Presentation Q4 2025 Results January 29, 2026 Forward-Looking Statements This presentation and other written or oral statements made from time to time by management contain "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve certain risks and uncertainties. The words "anticipate", "believe", "estimate", "expect", "intend", "will", "would", "could", "can", "should", "targeting", "projecting", "driving", "future", "plan", "predict", "may" and si ...

Core Insights - Xerox Holdings Corporation reported its fourth-quarter and full-year results for 2025, highlighting better-than-expected operating income and free cash flow performance despite macroeconomic challenges [2][26]. Financial Performance - **Fourth-Quarter Results**: Revenue reached $2,028 million, a 25.7% increase from $1,613 million in Q4 2024. Gross profit was $579 million, up from $502 million, but gross margin decreased to 28.6% from 31.1% [4][7]. - **Full-Year Results**: Total revenue for FY 2025 was $7,022 million, a 12.9% increase from $6,221 million in FY 2024. Gross profit was $1,901 million, down from $1,960 million, with a gross margin of 27.1%, down from 31.5% [4][8]. Segment Performance - **Fourth-Quarter Segment Results**: - Print and Other segment revenue was $1,873 million, a 24.9% increase year-over-year. IT Solutions segment revenue was $158 million, up 38.6% [7]. - **Full-Year Segment Results**: - Print and Other revenue increased by 7.0% to $6,272 million, while IT Solutions revenue surged 112.6% to $761 million [8]. Strategic Initiatives - The integration of Lexmark is ahead of schedule, with the company reaffirming a synergy target of at least $300 million. The IT Solutions segment saw double-digit growth in bookings, billings, and revenue [5][34]. - The company has onboarded 12 new U.S. dealers in 2025 as part of its channel expansion strategy [5]. Guidance for 2026 - Xerox expects revenue to exceed $7.5 billion, with adjusted operating income projected between $450 million and $500 million, and free cash flow around $250 million [11][32].

Financial Data and Key Metrics Changes - Total revenue for 2025 was $2.133 billion, a 0.5% increase compared to 2024, and a 1.1% increase on a comparable adjusted basis [19] - GAAP net income improved to $85.3 million, or $1.87 per share, up from $52.9 million, or $1.18 per share in 2024 [19] - Comparable adjusted EBITDA was $431.5 million, a 6.2% increase from the previous year, with adjusted EBITDA margins expanding to 20.2% [19][20] - Comparable adjusted EPS grew by 12.6% to $3.67 from $3.26 in 2024 [20] Business Line Data and Key Metrics Changes - Merchant services revenue for 2025 was $398.6 million, growing by 3.8% compared to 2024, with adjusted EBITDA at $85.9 million, a 9.4% increase [20][21] - B2B payment segment revenue finished at $290.5 million, reflecting a 0.9% growth, with adjusted EBITDA at $64.4 million, a 12.8% increase [23][24] - Data-driven marketing business revenue reached $307.3 million, a 31.3% increase year-over-year, with adjusted EBITDA at $86.4 million, reflecting a 28.1% margin [26][27] - Print business revenue declined to $1.14 billion, a 5.7% decrease, with adjusted EBITDA at $366.9 million, a 2.6% decline [28][30] Market Data and Key Metrics Changes - Payments and data now account for 47% of total revenue, up from 43% a year ago, with expectations to achieve revenue parity with print businesses later this year [5][8] - The data segment's revenue growth was particularly strong, expanding over 30% year-over-year, driven by enhanced marketing capabilities and AI tools [9][26] Company Strategy and Development Direction - The company is focused on shifting its revenue mix towards payments and data, aiming for ongoing profitable growth [6][8] - There is a commitment to driving operational efficiencies and improving margins across all business segments [14][15] - The company aims to reduce net debt and improve its leverage ratio, with a target of achieving a leverage ratio of 3 times or lower [16][33] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting traditional consumer behavior patterns and stable macroeconomic conditions [46][48] - The company anticipates continued growth in the data segment, although it will face tougher comparisons in the latter half of the year [49] - Overall, management is confident in the company's trajectory heading into 2026, with expectations for significant advances in strategic priorities [39] Other Important Information - Free cash flow for 2025 was $175 million, up from $100 million in 2024, reflecting improved cash generation and operational efficiency [33] - The company has a strong balance sheet, with net debt reduced to $1.39 billion, and a net debt to adjusted EBITDA ratio of 3.2 times [32][33] - A regular quarterly dividend of $0.30 per share was approved, payable on February 23, 2026 [35] Q&A Session Summary Question: How is Deluxe positioned to respond to trends in AI and agentic commerce? - Management highlighted that Deluxe has applied AI technology across multiple business areas, enhancing performance and delivering improved outcomes [42][44] Question: What are the primary objectives for the business in 2026? - The main objectives include shifting the revenue mix towards payments and data, driving operational efficiency, and generating cash flow to reduce debt [55][56] Question: What opportunities exist for growth in the ISV distribution channel? - Management noted a robust pipeline for the ISV distribution channel, with ongoing investments in API and reporting tools to enhance appeal [57][58] Question: What is the company's approach to build versus buy decisions for investments? - The company maintains a balance between building capabilities internally and making strategic acquisitions that enhance performance [66][68]

Core Viewpoint - HP Inc. is facing significant secular challenges in both its PC and printing businesses, leading to a downgrade by Barclays and a reduced price target [1][2] Group 1: Stock Performance and Analyst Ratings - Barclays downgraded HP Inc. to "Underweight" from "Equal Weight," lowering the price target from $24.00 to $18.00 [1] - Wall Street analysts have a consensus "Buy" rating on HP Inc., with an average price target of $25, indicating a potential upside of 22.73%, while the highest target of $30 suggests a 47.28% upside [3] Group 2: Business Challenges - The current memory cycle is expected to pressure HP's PC business, which is significantly consumer-focused, with approximately 30% of the Personal Systems segment being consumer-oriented [2] - Analysts believe that the combination of secular challenges in both PCs and printing, along with a lack of catalysts, will keep the stock under pressure through 2026 [2]

Group 1 - HP Inc. has been downgraded by Goldman Sachs from Hold to Sell, with a price target reduction from $24 to $21 due to concerns over PC margin pressures and slowing demand [1][2] - Despite the downgrade, Goldman Sachs recognizes HPQ's commitment to returning 100% free cash flow to shareholders and its ability to maintain market share across its segments [2] - The company's increased exposure in the PC market poses downside risks for its estimates in 2026 and 2027 [2] Group 2 - On January 6, HP Inc. launched the HyperX OMEN MAX 16 gaming laptop at CES 2026, featuring up to 300W Total Platform Power with Intel Core Ultra 200HX processors, AMD Ryzen AI processors, and NVIDIA GeForce RTX 5090 Laptop GPU [3] - HP Inc. is identified as a global technology company specializing in personal computing, printing, and related services [3]