Xerox Beats Analyst Estimates on EPS

Xerox (NYS: XRX) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Xerox met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank.


Gross margins contracted, operating margins increased, net margins contracted.

Revenue details
Xerox logged revenue of $5.92 billion. The seven analysts polled by S&P Capital IQ foresaw revenue of $5.87 billion on the same basis. GAAP reported sales were 0.7% lower than the prior-year quarter's $5.96 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.30. The nine earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. GAAP EPS of $0.26 for Q4 were 3.7% lower than the prior-year quarter's $0.27 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.5%, 70 basis points worse than the prior-year quarter. Operating margin was 9.0%, 50 basis points better than the prior-year quarter. Net margin was 5.7%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $5.50 billion. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $22.54 billion. The average EPS estimate is $1.11.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 563 members out of 637 rating the stock outperform, and 74 members rating it underperform. Among 174 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 159 give Xerox a green thumbs-up, and 15 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Xerox is hold, with an average price target of $7.73.

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The article Xerox Beats Analyst Estimates on EPS originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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