Xerox (XRX.US) shares tumbled more than 16.0% on Tuesday after the office equipment maker posted disappointing quarterly figures.
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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.
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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.
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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
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