Xerox Earnings: Here’s Why the Stock is Down Now

Xerox Corp. (NYSE:XRX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.35%.

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Xerox Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.39% to $0.27 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Decreased 2.67% to $5.36 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Xerox Corp. reported adjusted EPS income of $0.27 per share. By that measure, the company beat the mean analyst estimate of $0.24. It missed the average revenue estimate of $5.5 billion.

Quoting Management: “We delivered solid revenue growth in our services business along with a stable segment margin and a 64 percent increase in the total contract value of signings to $3.7 billion,” said Ursula Burns, Xerox chairman and chief executive officer.

Key Stats (on next page)…

Revenue decreased 9.57% from $5.92 billion in the previous quarter. EPS decreased 10% from $0.30 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.26 and has not changed. For the current year, the average estimate has moved up from a profit of $1.11 to a profit of $1.12 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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