JB and SB are doing it. New look of Xerox seems to be very well received by the Street. Optimistic about the future. Low performers should be worried (obviously). High performers, giddy up. Change was needed, change is happening, finally.
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Stock is up because they said they are fixing things. They didn't actually fix anything. They just said they were. It's like giving someone your money, they lose it, you give them more, but they lose it again... but they promise they wont next time so you pay them double this time because they said they are good for it. What do you think is going to happen?
See below:
Xerox Holdings (NASDAQ: XRX) shares powered 12.6% higher through 12:20 p.m. ET on Thursday, despite missing analyst targets for both sales and earnings.
Heading into its fiscal Q4 report, analysts had predicted this office printer company would suffer a steep decline in earnings versus last year -- and they were right. Instead of the $0.89 per-share adjusted profit that Xerox earned in Q4 2022, the company reported just $0.43 per share in adjusted earnings this time around. That was a decline of more than half, and also less money than the $0.52 per share Wall Street had predicted Xerox would make.
Sales performance was a little better. Analysts had forecast Xerox would collect $1.79 billion in sales in Q4; Xerox reported $1.77 billion.
Bad news for Xerox
But wait: That's bad news, right? Xerox missed sales and earnings predictions. Its sales and earnings both went down, not up, in comparison to last year. So why are Xerox shares up, not down, today?
Well, yes, it was bad news. Revenues declined 9% in Q4, and non-GAAP profits dropped 52% year over year. Actual earnings, as calculated according to generally accepted accounting principles (GAAP), by the way, declined even more steeply, falling from $1.24 per share a year ago to just $0.50 per share in Q4 2023 -- a 60% decline.
And yet investors seem to be responding less to Xerox's problems, and more to what Xerox says it is doing to fix these problems. "Last year, steps we took to structurally simplify our business impacted revenue, but led to 170 basis points of adjusted operating margin expansion and laid the foundation for successful execution of our Reinvention," CEO Steve Bandrowczak explained. When complete, this "reinvention" should improve the company's annual operating profits by $300 million or more, returning the company to full-year profitability. For context, Xerox ended both 2022 and 2023 with net losses for the year.
https://finance.yahoo.com/news/why-xerox-stock-popped-13-183320460.html
GameStop market cap @ 4.4 billion, twice that of xrx! That’s how truly wretched xerox situation is. They could only dream of being gme.
https://m.youtube.com/watch?v=VRrMu7B1L2I
Gamestop says hello. Company that has maybe 3 and a half stores left and stock blew up for no reason. How did that high stock price work out?
“Stock buy backs? Dadividends ends?” Your fancy shmancy Wall Street words are harshing our buzz dude. Xrx is up! Time to party!
https://m.youtube.com/watch?v=VRrMu7B1L2I
Xerox stock has been boosted by dividends and stock buy-backs since Icahn's failed attempt to buy HP back in 2020. The lightning-quick comment at the end of the Q&A session that there would be no buy-backs in 2024 was telling. That's a warning. Combine that statement with the actual numbers, not the fog, tells me that cash is becoming an issue at Xerox. This is no surprise considering the company's falling revenues, debt load and higher interest rates. On the other side of the ledger, there are only so many divisions to sell and people to RIF before that source of free cash dries-up to...
I don’t have much time to flirt today. Too busy day trading. I’m totally feasting on the buck or two per share gratis of laid off xeroids. More layoffs please! Xrx to the moon ($20).
Making copies!!!!
https://www.youtube.com/watch?v=h1Fk_mDem4o
I loved the Xerox 5090!!!!
Mo--ns, there is no correlation between the stock and the future outlook of the company. It's simply financially driven. Layoffs are always going to be well rec'd by the public. It wasn't because we said we're building an AI rocketship that'll go to the moon and we're going after Elon Musk.
Layoffs=more operating margin=dividend.
Layoffs=for sale=pay over current stock.
Hi Sally.
Hey we can’t be having positivity like this on here! Follow the script- only doom and gloom messages from jaded ex lovers allowed! Or pretend you’re a fake insider with extensive knowledge about the inner workings of a sinister master plan. Remember, the darker the berry, the sweeter the juice!
10% increase already?!?! Butter my biscuit and call me Sally!
Even if it’s a stock pump, once it corrects we will still be back to the $16+ range. So looks like the news was still well received overall. I was told on here that it was going to nosedive further, get your popcorn ready, etc. I thought all the pessimistic posters would be right. What happened guys and girls?
Let’s go team Xerox! Another 100 years baby!
...because investors know what a pump looks like. Don't be stupid.
How can stock go up when everything was down and all they did was announce layoffs and shut parts of the business.
It even says in the FAQ section that one of the three priorities with this is to get investors more money.
Why are you a fool?