Why Xerox Stock Dropped 12% on Tuesday

Xerox Holdings (NASDAQ: XRX) shares tumbled 11.7% through 10:25 a.m. ET Tuesday after the company missed analyst forecasts for quarterly earnings but beat on sales.

Heading into its fiscal Q4 report, analysts predicted the office printer company would earn $0.49 per share on just under $1.6 billion in sales. In fact, Xerox reported just over $1.6 billion in sales. However, its earnings for the final quarter of fiscal 2024 were a disappointing $0.36 per share.

Sales declined nearly 9% year over year despite the beat. On earnings, not only did the company "miss," but its miss was also a non-GAAP number that doesn't count what the company considers one-time costs. Calculated according to generally accepted accounting principles (GAAP), Xerox reported a $0.20-per-share Q4 loss.

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Source Fool.com