Xerox Beats Earnings Expectations; Sales Down Slightly
Xerox is reporting 3rd quarter numbers Wednesday that saw better than expected profits, while sales were a bit less than analysts anticipated.
This has been an ongoing story for Xerox, with profits coming in a little ahead of Wall Street expectations, and sales generally flat or down slightly overall. The company earned $266 million in the quarter, down $20 million from last year.
Earnings per share of 27 cents beat estimates by a penny. Revenues of $5.1 billion were down two percent.
The earnings reports continue to reflect the big change in Xerox's business model over the last several years, as the company shifts to a situation where more of their revenues come from selling business services, than equipment.
Brighton Securities Chairman George Conboy says this strategy seems to be working for Xerox.
"It appears to reveal in Xerox's business an evolution, a successful evolution, into a profitable service company and an evolution that is hard to find a similar example in the corporate world.”
Xerox continues to do some restructuring, but no major new layoff programs are being announced. In fact, employment in the Rochester area of 6728 people is 274 staffers higher than it was last year at this time. That is due in part to job additions at its locally based call center operation.