Q4 Earnings Roundup: Xerox (NASDAQ:XRX) And The Rest Of The Hardware & Infrastructure Segment

Looking back on hardware & infrastructure stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Xerox (NASDAQ:XRX) and its peers.

The Hardware & Infrastructure sector will be buoyed by demand related to AI adoption, cloud computing expansion, and the need for more efficient data storage and processing solutions. Companies with tech offerings such as servers, switches, and storage solutions are well-positioned in our new hybrid working and IT world. On the other hand, headwinds include ongoing supply chain disruptions, rising component costs, and intensifying competition from cloud-native and hyperscale providers reducing reliance on traditional hardware. Additionally, regulatory scrutiny over data sovereignty, cybersecurity standards, and environmental sustainability in hardware manufacturing could increase compliance costs.

The 10 hardware & infrastructure stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 22% since the latest earnings results.

Xerox (NASDAQ:XRX)

Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ:XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe.

Xerox reported revenues of $1.61 billion, down 8.6% year on year. This print exceeded analysts’ expectations by 2.9%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.

Xerox delivered the slowest revenue growth of the whole group. The stock is down 50.6% since reporting and currently trades at $4.80.

Read our full report on Xerox here, it’s free.

Best Q4: Pure Storage (NYSE:PSTG)

Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE:PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.

Pure Storage reported revenues of $879.8 million, up 11.4% year on year, outperforming analysts’ expectations by 1.2%. The business had a satisfactory quarter with an impressive beat of analysts’ EPS estimates but billings in line with analysts’ estimates.

Pure Storage achieved the highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 28.7% since reporting. It currently trades at $44.52.

Is now the time to buy Pure Storage? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: CompoSecure (NASDAQ:CMPO)

Pioneer of the luxury metal credit card that's in the wallets of affluent consumers worldwide, CompoSecure (NASDAQ:CMPO) designs and manufactures premium metal payment cards and secure authentication solutions for financial institutions and digital asset storage.

CompoSecure reported revenues of $100.9 million, flat year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 13% since the results and currently trades at $10.45.

Read our full analysis of CompoSecure’s results here.

HP (NYSE:HPQ)

Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE:HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.

HP reported revenues of $13.5 billion, up 2.4% year on year. This print beat analysts’ expectations by 1.1%. Zooming out, it was a slower quarter as it produced a slight miss of analysts’ EPS estimates.

The stock is down 20.7% since reporting and currently trades at $26.29.

Read our full, actionable report on HP here, it’s free.

Dell (NYSE:DELL)

Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE:DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.

Dell reported revenues of $23.93 billion, up 7.2% year on year. This result missed analysts’ expectations by 2.5%. Overall, it was a mixed quarter for the company.

The stock is down 17.2% since reporting and currently trades at $89.31.

Read our full, actionable report on Dell here, it’s free.

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