02:25 PM EDT, 04/23/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target by $2 to $14 on a P/E of 7x our 2025 EPS view, reflecting restructuring efforts. We cut our '24 EPS to $1.35 from $1.75 and '25's to $2.07 from $2.13. XRX posted Q1 EPS of $0.06 vs. $0.49, missing consensus by $0.29. Sales declined 12.4% (-13.2% cc) to $1.5B, missing estimates, pressured by declines in Equipment sales (-26% Y/Y) and Post-Sales (-9% Y/Y). Geographic simplification reduced backlog, driving 16%-pts of the decline while also pressuring margins. Adjusted operating margin compressed 470 bps to 2.2% on lower gross profit and higher bad debt expense. We expect working capital to improve over the next few quarters as inventory normalizes. However, XRX's pivot to IT services still seems reactive, with limited evidence of successfully transforming the secularly challenged core print business (>90% of revenue). More decisive actions are needed to reposition growth areas, in our view. We would like to see more progress on XRX's restructuring efforts to become more positive.