XRX - Why Is Xerox Stock Dropping Today?
Xerox Holdings stock ( NASDAQ:XRX ) fell on Tuesday after the document management and printing equipment veteran released a poor third-quarter report. At 9:45 a.m. ET, share prices fell 25.8% before rebounding to a 17.5% loss by 1:20 p.m. ET.
What Happened to Xerox Stock?
Xerox’s third-quarter revenues were $1.75 billion, a rounding error lower than the year-ago figure. Adjusted profits fell by 60% to $0.19 per diluted share. The average Wall Street analyst had predicted profits of $0.43 per share on top-line sales of $1.77 billion.
Furthermore, management reduced its full-year sales forecast by around $50 million. Xerox’s free cash flow projection for the same time was reduced from $400 million to $125 million.
So, what now?
In its second-quarter forecast update , Xerox predicted that its congested supply chain would ease up in the third quarter , but that good development never happened. Because 35% of sales are collected overseas, the firm encountered considerable currency conversion issues. Inflation also had a significant impact on Xerox stock ( NASDAQ:XRX ).
CEO Steve Bandrowczak recognized the macroeconomic issues confronting his company, but he also restated his belief that the addressable market would expand in the coming years. In this case, Xerox is drawing on decades of print and document management expertise.
Following today’s price plunge, Xerox stock ( NASDAQ:XRX ) is trading at fresh multiyear lows. Bulls w...
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