Shares of Xerox (NASDAQ: XRX) declined over 14% yesterday after the company reported lower-than-expected Q3 results and also slashed its FY2022 revenues outlook.
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Based in the U.S., Xerox Holdings Corp. is a holding company that provides printing and digital document products and services through its subsidiaries.
A Snapshot of Xerox’s Q3 Results
Adjusted earnings of $0.19 per share fell massively short of the consensus estimate of $0.41 per share. Further, it was much lower compared to earnings of $0.48 per share in the prior-year period.
Moreover, revenues remained flat year-over-year at $1.75 billion and lagged consensus estimates by $10 million.
Further, the company cut its FY2022 revenue guidance due to the weakening of the Euro and British Pound as well as uncertainties in global foreign exchange rates. It also trimmed its free cash flow outlook, citing supply chain and inflation challenges.
The company now forecasts revenue to be in the range of $7.0 – $7.1 billion in actual currency, compared to the previously guided revenue of at least $7.1 billion.
Is Xerox Stock a Buy?
On TipRanks, XRX stock has received two Sell recommendations for a Moderate Sell consensus rating. Xerox’s average price forecast of $12 implies 12.25% downside potential.
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