Thu October 24, 2013
Xerox 3rd Quarter Generally Flat Compared To Last Year
Xerox is reporting a third quarter that generally met expectations, but didn't see any big jumps or dips in earnings or revenues.
The company earned $286 million in the latest quarter up slightly from last year. Earnings per share of 26 cents were a penny better than expected, and sales were generally flat compared to last year at this time.
The business services that Xerox provides to other companies continues to grow, while some equipment sales are declining. But Xerox spokeswoman Karen Arena says this was overall, a solid quarter for the company.
"(It was ) really a result of a diversified portfolio. We're expanding from our core, the strategy is paying off, services is now a full 56 percent of revenue, growing steadily."
At Brighton Securities, George Conboy says he was a little disappointed in the quarter, since sales really haven't been growing, but overall, he says this was a pretty good quarter for Xerox.
"Earnings are OK, the company is profitable, but they're not making progress on a net basis. Their old business is shrinking, the new business is growing, but on a net basis, Xerox continues to tread water. "
Xerox's third quarter statement does indicate there was some restructuring going on in the third quarter, and some more expected in the fourth quarter. But the company is not predicting any major layoff programs. They say as in previous quarters some parts of the company are adding jobs, while other divisions have cut positions.