The 10-second takeaway
For the quarter ended March 31 (Q1), Xerox beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share stayed the same.
Margins dropped across the board.
Xerox chalked up revenue of $5.50 billion. The seven analysts polled by S&P Capital IQ wanted to see revenue of $5.44 billion on the same basis. GAAP reported sales were 0.7% higher than the prior-year quarter's $5.47 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.23. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.22 per share on the same basis. GAAP EPS of $0.19 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.0%, 200 basis points worse than the prior-year quarter. Operating margin was 6.0%, 160 basis points worse than the prior-year quarter. Net margin was 4.9%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.60 billion. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $22.90 billion. The average EPS estimate is $1.12.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 524 members out of 599 rating the stock outperform, and 75 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 126 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 outperform, with an average price target of $9.11.
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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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.