Document technology company Xerox (NASDAQ: XRX) will be announcing earnings results this Thursday morning. Here’s what to look for.
Xerox missed analysts’ revenue expectations last quarter, reporting revenues of $2.03 billion, up 25.7% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.
Is Xerox a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Xerox’s revenue to grow 18.9% year on year, a reversal from the 3% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Xerox has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Xerox’s peers in the it services & other tech segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IBM delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 1.4%, and Accenture reported revenues up 8.3%, topping estimates by 0.8%. IBM traded down 8.3% following the results while Accenture was up 2.5%.
Read our full analysis of IBM’s results here and Accenture’s results here.
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 13.1% on average over the last month. Xerox is up 25.5% during the same time and is heading into earnings with an average analyst price target of $2.25 (compared to the current share price of $1.60).
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