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Xerox Awarded Multi Million Contract by USDA, Shares Flat

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Xerox Corporation (XRX - Free Report) recently announced that it has been awarded a 10-year contract worth $110 million by the U.S. Department of Agriculture (USDA). However, the news failed to lift investor sentiments as the shares remained relatively flat on the following day to close at $9.80 on Oct 12, 2016.

USDA aims to offer economic opportunity via innovation, facilitating rural America to flourish. It promotes agriculture production to provide best quality produce to the Americans, and also throughout the world. This government system helps preserve the Nation's natural resources through conservation, restored forests, improved watersheds, and healthy private working lands.

Xerox will provide its expertise to managed print services units across all USDA agencies. The company will install up to 16,000 Xerox ConnectKey-enabled printers and multifunction devices across around 3,000 USAD sites.  Alongside, it will also provide its technical assistance at all of these USDA locations.

Per a research conducted by Gartner, companies spend 1–3% of their annual revenue on printing. Managed print services will help reduce such expenditure by nearly 30%. Using Xerox’s ConnectKey technology and services, USDA will be able to decrease costs, while modernizing their operations.  

Through these endeavors, Xerox remains committed to its five-plank strategy which revolves around portfolio management, global growth, cost transformation, operational excellence and analytics.

Headquartered in Norwalk, CT, Xerox is a leader in the development, manufacture, marketing, servicing and financing of document equipment worldwide. The company is intensely focused on improving its services margin, implementing restructuring actions and prioritizing investments to expedite benefits in the near future.

Xerox currently carries a Zacks Rank #2 (Buy). Some other favorably ranked stocks in the same industry include Acacia Research Corporation (ACTG - Free Report) , InnerWorkings Inc. (INWK - Free Report) and Performant Financial Corporation (PFMT - Free Report) . Acacia Research and Performant Financial both carry the same Zacks Rank as Xerox, whereas InnerWorkings sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

InnerWorkings is a Business Service stock with an average positive earnings surprise of 77.9% for the past four quarters. The company has beaten estimates on all occasions. Its share price has increased by approximately 18.3% year to date.

Acacia Research belongs to the Business Service space. Over the past 30 days, its Zacks Consensus Estimate has remained unchanged. Its share price has increased 39.9% year to date.

Performant Financial’s earnings estimates remained stable over the past 60 days. Its share price has gained 72.1% year to date.

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