Back to top

Xerox (XRX) to Report Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

Xerox Corporation (XRX - Free Report) is slated to report fourth-quarter 2018 results on Jan 29, before the bell.

Shares of the company have declined 4.6% in the past year compared with the 26.2% decline of the industry.

Let’s see how things are shaping up for the announcement.

Revenues to Decline Year Over Year

The Zacks Consensus Estimate for Xerox’s fourth-quarter revenues is pegged at $2.63 billion, reflecting year-over-year decline of 4.2%. The expected decline is likely to be due to continued weakness in post-sale revenues that are dependent on machine sales and page volume.

In third-quarter 2018, revenues totaled $2.35 billion that fell 5.8% on a year-over-year basis.

Xerox has a revenue improvement strategy in place that includes simplification of organizational structure, improving alignment of compensation and expansion of channel presence. Expected results are likely to take time.

EPS to Register Y/Y Growth

The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is pegged at $1.16, indicating year-over-year increase of 11.5%. The expected uptick is likely to be driven by benefits of cost savings and productivity improvements.

In the last reported quarter, adjusted EPS of 85 cents declined 4 cents from the year-ago quarter’s tally.

Xerox Corporation Price and EPS Surprise



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.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings:

Booz Allen Hamilton (BAH - Free Report) has an Earnings ESP of +4.22% and a Zacks Rank #2. The company is slated to release third-quarter fiscal 2019 results on Feb 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

First Data has an Earnings ESP of +6.29% and a Zacks Rank #3. The company is scheduled to release third-quarter 2018 results on Feb 7.

IQVIA Holdings (IQV - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #3. The company is expected to report third-quarter 2018 results on Feb 13.

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 >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Xerox Corporation (XRX) - free report >>

Booz Allen Hamilton Holding Corporation (BAH) - free report >>

IQVIA Holdings Inc. (IQV) - free report >>