Xerox Earnings: Two Straight Quarters of Profit Declines
S&P 500 (NYSE:SPY) component Xerox Corporation (NYSE:XRX) reported its results for the second quarter. Xerox engages in the development, manufacturing, marketing, services and finance of document equipment, software, solutions and services worldwide.
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Xerox Corporation Earnings Cheat Sheet
Results: Net income for Xerox Corporation fell to $316 million (22 cents per share) vs. $327 million (22 cents per share) a year earlier. This is a decline of 3.4% from the year-earlier quarter.
Revenue: Fell 1.3% to $5.54 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Xerox Corporation reported adjusted net income of 26 cents per share. By that measure, the company fell in line with the mean estimate of 26 cents per share. Analysts were expecting revenue of $5.59 billion.
Quoting Management: “With more than half our total revenue coming from services, accelerating growth in this segment of our business is a priority,” said Ursula Burns, Xerox chairman and chief executive officer. “Our second-quarter results reflect solid progress, with eight percent growth from business process outsourcing, nine percent growth from IT outsourcing and six percent growth in document outsourcing, all at constant currency.”
The company fell in line with estimates last quarter after beating expectations in the previous two quarters. In the first quarter, it topped the mark by one cent, and in the fourth quarter of the last fiscal year, it was ahead by one cent.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 28 cents a share to 27 cents over the last sixty days. For the fiscal year, the average estimate has moved down from $1.12 a share to $1.11 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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