Will Xerox Beat These Analyst Estimates?

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Xerox (NYS: XRX) is expected to report Q2 earnings on July 20. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Xerox's revenues will compress -4.8% and EPS will wane -3.7%.

The average estimate for revenue is $5.35 billion. On the bottom line, the average EPS estimate is $0.26.


Revenue details
Last quarter, Xerox booked revenue of $5.50 billion. GAAP reported sales were 0.7% higher than the prior-year quarter's $5.47 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.23. GAAP EPS of $0.19 were the same as the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 31.0%, 200 basis points worse than the prior-year quarter. Operating margin was 7.0%, 60 basis points worse than the prior-year quarter. Net margin was 4.9%, 20 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $22.81 billion. The average EPS estimate is $1.11.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 545 members out of 621 rating the stock outperform, and 76 members rating it underperform. Among 140 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give Xerox a green thumbs-up, and 15 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Xerox is outperform, with an average price target of $9.11.

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The article Will Xerox Beat These Analyst Estimates? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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