Xerox Corporation (XRX) Q3 Earnings: What's in the Cards?
Xerox Corporation XRX is slated to report third-quarter 2018 results on Oct 23.
Advancements in IT have replaced the traditional means of sending and storing information via digital media. Consequently, Xerox is grappling with lower demand for paper-related systems and products.
So far this year, shares of Xerox have declined 7.9% against the 2.9% growth of the industry it belongs to.
Revenues to Decline Year Over Year
The Zacks Consensus Estimate for Xerox’s third-quarter revenues is pegged at $2.42 billion, reflecting year-over-year decline of 3.1%. The expected decline can be attributed to weak post-sale revenues resulting from continuing lower page volume trends.
In second-quarter 2018, revenues of $2.51 billion decreased 2.2% on year-over-year basis.
Xerox Corporation Revenue (Quarterly)
Xerox Corporation Revenue (Quarterly) | Xerox Corporation Quote
EPS to Register Year-Over-Year Decline
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 77 cents, indicating year-over-year decline of 13.5%. The expected decline is mainly due to weak operating performance as cost savings are still not enough to offset the impacts of revenue decline.
In the last reported quarter, adjusted earnings per share of 80 cents declined 6 cents from the year-ago quarter number.
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 Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in third-quarter 2018:
WEX WEX has an Earnings ESP of +0.49% and a Zacks Rank #2. The company is scheduled to report results on Oct 31. You can see the complete list of today’s Zacks #1 Rank stocks here.
TransUnion TRU has an Earnings ESP of +0.99% and a Zacks Rank #3. The company is slated to release results on Oct 23.
FTI Consulting FCN has an Earnings ESP of +4.43% and a Zacks Rank #3. The company is scheduled to report results on Oct 25.
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