Xerox (XRX.US) shares tumbled more than 16.0% on Tuesday after the office equipment maker posted disappointing quarterly figures.
-
Company earned 19 cents per share, well below market estimates of 40 cents per share. Xerox was hit by surging costs and supply chain constraints. Q3 revenue of $1.75 billion fell short of analysts' projections of $1.77 billion, according to Refinitiv data.
-
The photocopy maker cut its annual revenue to between $7 billion and $7.1 billion, compared to its previous forecast of at least $7.1 billion and cash flow guidance, due to appreciating USD and a slower-than-expected recovery in global supply chains.
-
Also, a hybrid work environment has a negative impact on the company's performance as many firms and consumers are switching to digital documents to save money and help the environment.
Xerox (XRX.US) stock tested 13-year lows around $11.80, however buyers managed to erase some losses later in the session and price returned above recent lows at $13.20. Nevertheless the main sentiment remains bearish, and only a decisive break above the downward trendline would herald a potential trend reversal. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
