On Jan. 23, Xerox (NYSE:XRX) released fourth-quarter and year-end results for the period ended Dec. 31.
- Sales grew 3% to $4.4 billion.
- Total diluted earnings fell 18.5% because of a hefty restructuring charge. Excluding the charge, earnings came in at $0.38, a penny above expectations.
- Free cash flow came in at $700 million, well above reported net income.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$4,340 |
$4,379 |
$4,250 |
3.0% |
|
Net Profit |
-- |
$214 |
$282 |
(24.1%) |
|
EPS |
$0.37 |
$0.22 |
$0.27 |
(18.5%) |
|
Diluted Shares |
977 |
1,039 |
(6.0%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
36.42% |
36.52% |
(0.10) |
|
Operating Margin |
5.57% |
8.16% |
(2.59) |
|
Net Margin |
4.89% |
6.64% |
(1.75) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Investments |
$1,536 |
$1,566 |
(1.9%) |
|
Accounts Receivable |
$2,199 |
$2,037 |
8.0% |
|
Inventory |
$1,163 |
$1,201 |
(3.2%) |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,133 |
$1,043 |
8.6% |
|
Long-Term Debt |
$5,660 |
$6,139 |
(7.8%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$720 |
$631 |
$89 |
|
Capital Expenditures |
$20 |
$54 |
($34) |
|
Free Cash Flow |
$700 |
$577 |
$123 |
Find out why Fools always follow the money.
Related Companies:
- Canon (NYSE:CAJ)
- Pitney Bowes (NYSE:PBI)
- Diebold (NASDAQ:DBD)
Related Foolishness:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: Free Cash Flow
- Foolish Fundamentals: Return on Invested Capital
- Foolish Fundamentals: The Cash Flow Statement
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Pitney Bowes is a Motley Fool Income Investor recommendation, and Diebold is a Motley Fool Inside Value pick. Check out either service free for 30 days.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.
