Xerox Holdings Corporation (XRX) reported disappointing third-quarter 2024 results that missed analysts' estimates for both earnings and revenue. The company posted a net loss of $1.21 billion, or $9.71 per share, compared to a profit of $49 million, or $0.28 per share, in the prior-year quarter. The significant loss was primarily driven by a $1.1 billion non-cash goodwill impairment charge.

Excluding one-time items, adjusted earnings came in at $0.25 per share, missing analysts' expectations of $0.51 per share. Revenue declined 7.5% year-over-year to $1.53 billion, also falling short of estimates of $1.63 billion.

Equipment sales, a key revenue driver for Xerox, slumped 12.2% due to lower-than-expected improvements in sales force productivity, delays caused by Hurricane Helene, and unfavorable product mix. Post-sale revenue, which includes services and maintenance, fell 6.1% due to lower outsourcing and service revenue as well as intentional reductions in non-strategic revenue.

Citing the weaker-than-anticipated results, Xerox cut its full-year 2024 revenue guidance from a decline of 5-6% to around a 10% decline. The company also lowered its adjusted operating margin outlook from at least 6.5% to around 5.0% and reduced its free cash flow guidance to a range of $450-$500 million, down from at least $550 million previously.

Xerox's stock price plunged after the disappointing results and lowered guidance, reflecting concerns about the company's performance and future prospects.