Xerox (XRX) Q4 Earnings Report Preview: What To Look For

Document technology company Xerox (NASDAQ:XRX) will be announcing earnings results this Thursday before the bell. Here’s what to look for.

Xerox missed analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $1.96 billion, up 28.3% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ revenue estimates.

Is Xerox a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Xerox’s revenue to grow 26.8% year on year to $2.05 billion, a reversal from the 8.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Xerox has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Xerox’s peers in the it services & other tech segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Applied Digital delivered year-on-year revenue growth of 98.2%, beating analysts’ expectations by 14.8%, and Accenture reported revenues up 6%, topping estimates by 1.2%. Applied Digital traded up 8.1% following the results while Accenture’s stock price was unchanged.

Read our full analysis of Applied Digital’s results here and Accenture’s results here.

There has been positive sentiment among investors in the it services & other tech segment, with share prices up 2.2% on average over the last month. Xerox is down 11.4% during the same time and is heading into earnings with an average analyst price target of $3.75 (compared to the current share price of $2.15).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.