Xerox Holdings XRX releases its next round of earnings this Tuesday, July 27. Get the latest predictions in Benzinga's essential guide to the company's Q2 earnings report.
Net Income, Earnings, And Earnings Per Share
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Sell-side analysts expect Xerox Holdings's EPS to be near $0.38 on sales of $1.77 billion. In the same quarter last year, Xerox Holdings announced EPS of $0.15 on revenue of $1.47 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
The Wall Street consensus estimate for earnings would represent a 153.33% increase for the company. Sales would be up 20.82% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.30 | 0.60 | 0.24 | -0.03 |
| EPS Actual | 0.22 | 0.58 | 0.48 | 0.15 |
| Revenue Estimate | 1.59 B | 1.90 B | 1.60 B | 1.52 B |
| Revenue Actual | 1.71 B | 1.93 B | 1.77 B | 1.47 B |
Want Real-Time Earnings Calendar Updates?
Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.
Stock Performance
Shares of Xerox Holdings were trading at $23.43 as of July 23. Over the last 52-week period, shares are up 54.77%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Xerox Holdings is scheduled to hold the call at 08:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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