S&P 500 (NYSE:SPY) component Xerox Corporation (NYSE:XRX) reported its results for the first quarter. Xerox engages in the development, manufacturing, marketing, services and finance of document equipment, software, solutions and services worldwide.
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Xerox Earnings Cheat Sheet for the First Quarter
Results: Net income for the office automation and equipment fell to $269 million (19 cents per share) vs. $281 million (19 cents per share) a year earlier. This is a decline of 4.3% from the year-earlier quarter.
Revenue: Rose 0.7% to $5.5 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Xerox Corporation reported adjusted net income of 23 cents per share. By that measure, the company beat the mean estimate of 22 cents per share. Analysts were expecting revenue of $5.45 billion.
Quoting Management: “Services now represents more than half of our total revenue and will continue to be the growth engine of our company as we expand our BPO offerings and strengthen our leadership in managed print services,” said Ursula Burns, Xerox chairman and chief executive officer. “Our first-quarter results reflect the successful execution of our strategy: accelerate services, grow our install base of Xerox color products, and efficiently operate our business to deliver strong earnings and shareholder value.”
The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the fourth quarter of the last fiscal year, by one cent in the third quarter of the last fiscal year, and by 3 cents in the second quarter of the last fiscal year.
Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 27 cents per share to 26 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $1.12 per share, the average estimate for the fiscal year has fallen from $1.16 ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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