It has been about a month since the last earnings report for Xerox Holdings Corporation (XRX). Shares have added about 13.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Xerox Holdings Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Xerox Beats On Q3 Earnings EstimatesXerox reported impressive second-quarter 2021 results, with both earnings and revenues beating the Zacks Consensus Estimate.Adjusted earnings per share came in at 48 cents, surpassing the consensus mark by 11.6% and remaining flat year over year. Total revenues of $1.76 billion lagged the consensus mark by 3.8% and decreased 0.5% year over year on a reported basis and 1.6% on a constant-currency basis.Quarter DetailsSales revenues totaled $657 million, up 1% year over year. Services, maintenance and rentals revenues totaled $1.05 billion, down 1.4% year over year.Adjusted operating profit of $74 million decreased 43.5% year over year. Adjusted operating margin declined 320 basis points (bps) year over year to 4.2%. Selling, administrative and general expenses, as a percentage of revenues, increased 160 bps year over year to 23.5%. Research, development and engineering expenses, as a percentage of revenues, came in at 4.7%, up from the year-ago quarter’s 4.3%.Xerox exited the quarter with cash and cash equivalent balance of $2.2 billion compared with $2.1 billion at the end of the prior quarter. Long-term debt was $3.7 billion compared with $3.6 billion at the end of the previous quarter.The company generated $100 million of cash from operating activities. Capital expenditures and free cash flow during the quarter were $19 million and $81 million, respectively.2021 GuidanceXerox expects revenues to be around $7.1 billion. Free cash flow is expected to be at least $500 million.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -49.63% due to these changes.VGM ScoresAt this time, Xerox Holdings Corporation has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Xerox Holdings Corporation has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xerox Holdings Corporation (XRX): Free Stock Analysis Report To read this article on Zacks.com click here.