Australia markets closed
  • ALL ORDS

    7,249.70
    +27.20 (+0.38%)
     
  • ASX 200

    7,048.60
    +23.80 (+0.34%)
     
  • AUD/USD

    0.6437
    +0.0006 (+0.09%)
     
  • OIL

    90.77
    -0.94 (-1.02%)
     
  • GOLD

    1,864.60
    -14.00 (-0.75%)
     
  • Bitcoin AUD

    42,394.82
    +450.45 (+1.07%)
     
  • CMC Crypto 200

    579.66
    +0.90 (+0.15%)
     
  • AUD/EUR

    0.6085
    +0.0003 (+0.05%)
     
  • AUD/NZD

    1.0725
    -0.0051 (-0.48%)
     
  • NZX 50

    11,296.43
    +118.40 (+1.06%)
     
  • NASDAQ

    14,715.24
    +12.48 (+0.08%)
     
  • FTSE

    7,608.08
    +6.23 (+0.08%)
     
  • Dow Jones

    33,507.50
    -158.84 (-0.47%)
     
  • DAX

    15,386.58
    +63.08 (+0.41%)
     
  • Hang Seng

    17,809.66
    +436.63 (+2.51%)
     
  • NIKKEI 225

    31,857.62
    -14.90 (-0.05%)
     

Xerox (XRX) Gears Up for Q1 Earnings: What's in the Cards?

Xerox Holdings Corporation’s XRX first-quarter 2023 results are expected to be positively impacted by top-line strength and operating performance.

The company’s earnings surprise history has not been impressive. It has a trailing four-quarter average negative earnings surprise of 43.9%.

Xerox Holdings Corporation Price and EPS Surprise

Xerox Holdings Corporation price-eps-surprise | Xerox Holdings Corporation Quote

Expectations This Time Around

The Zacks Consensus Estimate for Xerox’s revenues in the to-be-reported quarter is pegged at $1.7 billion, indicating an increase of 2.3% from the year-ago figure. Our estimate indicates a rise of 1.2% year over year. The top line is expected to have benefited from an increase in sales revenues, with the Print and Other segment remaining in good shape.

The consensus mark for earnings stands at 21 cents per share against a loss of 12 cents per share in the year-ago quarter. Our estimate for eps stands at 19 cents. Top-line strength and operating performance are expected to have benefited the bottom line in the quarter.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Xerox this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Xerox has an Earnings ESP of -9.52% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season:

Waste Connections WCN currently has an ESP of +1.93% and a Zacks Rank of 3. The first-quarter 2023 results are set to be reported on Apr 26, after the market close.

The Zacks Consensus Estimate for the bottom line is pegged at 88 cents, indicating a 7.3% rise year over year. The consensus mark for revenues stands at $1.9 billion, up 15.4% from the figure reported in the previous year. WCN had an average surprise of 3.5% in the previous four quarters.

Waste Management WM currently has an ESP of +0.53% and a Zacks Rank of 3. The first-quarter 2023 results are scheduled on Apr 26, after the market close.

The Zacks Consensus Estimate for the bottom line is pegged at $1.26, suggesting a 2.3% decline year over year. The consensus mark for revenues stands at $4.8 billion, up 3.9% from the figure reported in the previous year. WM had an average surprise of 4.7% in the last four quarters.

Aptiv APTV currently has an ESP of +1.39% and a Zacks Rank of 3. The company is set to report first-quarter 2023 results on May 4, before the market open.

The Zacks Consensus Estimate for the bottom line is pegged at 86 cents, indicating a 36.5% increase from the year-ago figure. The consensus mark for revenues stands at $4.5 billion, up 7.9% from the figure reported in the previous year. APTV had a negative surprise of 8.7%, on average, in the past four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Xerox Holdings Corporation (XRX) : Free Stock Analysis Report

Waste Management, Inc. (WM) : Free Stock Analysis Report

Waste Connections, Inc. (WCN) : Free Stock Analysis Report

Aptiv PLC (APTV) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research