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.
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 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.
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.
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.
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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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