We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for Xerox (XRX) This Earnings Season?
Read MoreHide Full Article
Xerox Corporation (XRX - Free Report) is slated to report second-quarter 2018 results on Jul 26, before the bell.
Advancements in IT have replaced the traditional means of sending and storing information by digital media. As a result, Xerox is grappling with lower demand for paper-related systems and products, while its attempts to leverage the business process outsourcing market have failed to bolster growth.
So far this year, shares of Xerox have declined 13.4% against the 2.8% rise of the industry it belongs to.
Revenues to Decline Year Over Year
The Zacks Consensus Estimate for Xerox’s second-quarter revenues is pegged at $2.51 billion, reflecting year-over-year decline of 2.3%. The expected decline is likely to be due weak post-sale and equipment revenues.
Continuing lower page volume trends and a lower population of devices are expected to weigh on post-sale revenues in the to-be-reported quarter. Equipment sales are likely to suffer from overall market decline, unfavorable mix and weak OEM business.
In the first quarter, revenues of $2.43 billion decreased 0.8% on year-over-year basis.
The Zacks Consensus Estimate for second-quarter earnings per is pegged at 92 cents, indicating year-over-year growth of 5.7%. The uptick is likely to be driven by continued benefits of cost savings and productivity improvements.
In the first quarter, adjusted earnings per share of 68 cents were up by a penny from the year-ago quarter number.
Our Model Doesn’t Suggest a Beat
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Xerox has an Earnings ESP of 0.00% and a Zacks Rank #3, a combination that makes surprise prediction difficult.
Key Picks
Here are a few stocks from the broader Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in second-quarter 2018:
Aptiv (APTV - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank of 3. The company is slated to report quarterly numbers on Jul 31.
First Data Corporation has an Earnings ESP of +0.45% and a Zacks Rank of 3. The company is slated to report quarterly numbers on Jul 30.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
What's in the Cards for Xerox (XRX) This Earnings Season?
Xerox Corporation (XRX - Free Report) is slated to report second-quarter 2018 results on Jul 26, before the bell.
Advancements in IT have replaced the traditional means of sending and storing information by digital media. As a result, Xerox is grappling with lower demand for paper-related systems and products, while its attempts to leverage the business process outsourcing market have failed to bolster growth.
So far this year, shares of Xerox have declined 13.4% against the 2.8% rise of the industry it belongs to.
Revenues to Decline Year Over Year
The Zacks Consensus Estimate for Xerox’s second-quarter revenues is pegged at $2.51 billion, reflecting year-over-year decline of 2.3%. The expected decline is likely to be due weak post-sale and equipment revenues.
Continuing lower page volume trends and a lower population of devices are expected to weigh on post-sale revenues in the to-be-reported quarter. Equipment sales are likely to suffer from overall market decline, unfavorable mix and weak OEM business.
In the first quarter, revenues of $2.43 billion decreased 0.8% on year-over-year basis.
Xerox Corporation Revenue (TTM)
Xerox Corporation Revenue (TTM) | Xerox Corporation Quote
EPS to Register Year-Over-Year Growth
The Zacks Consensus Estimate for second-quarter earnings per is pegged at 92 cents, indicating year-over-year growth of 5.7%. The uptick is likely to be driven by continued benefits of cost savings and productivity improvements.
In the first quarter, adjusted earnings per share of 68 cents were up by a penny from the year-ago quarter number.
Our Model Doesn’t Suggest a Beat
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Xerox has an Earnings ESP of 0.00% and a Zacks Rank #3, a combination that makes surprise prediction difficult.
Key Picks
Here are a few stocks from the broader Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in second-quarter 2018:
Avis Budget Group (CAR - Free Report) has an Earnings ESP of +5.17% and a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aptiv (APTV - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank of 3. The company is slated to report quarterly numbers on Jul 31.
First Data Corporation has an Earnings ESP of +0.45% and a Zacks Rank of 3. The company is slated to report quarterly numbers on Jul 30.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>