Xerox (XRX) To Report Q3 Earnings: What's In The Offing?

Xerox Corporation (NYSE:XRX) will report third-quarter 2019 results on Oct 29, before the bell.

Shares of the company have gained a massive 57.3% year to date, outperforming the 48.5% rally of the industry it belongs to.

Q3 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $2.22 billion, indicating year-over-year decline of 5.8%. Weak equipment and post-sale revenues are expected to have hurt the top line. In the second quarter of 2019, revenues of $2.29 billion fell 8.8% on a year-over-year basis.

Earnings are expected to remain flat year over year, the Zacks Consensus Estimate for which is pegged at 85 cents. "Project Own It", the company’s initiative aimed at increasing productivity and operational efficiency, reducing costs and realigning business to changing market conditions, might have benefited the bottom line in the third quarter. In the second quarter of 2019, adjusted EPS of $99 increased 23.8%, year over year.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Xerox this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. 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 Zacks Rank #3.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on third-quarter 2019 earnings:

S&P Global (NYSE:SPGI) has an Earnings ESP of +1.72% and a Zacks Rank #2. The company is slated to report results on Oct 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

WEX Inc. (NYSE:WEX) has an Earnings ESP of +1.24% and a Zacks Rank #3. The company is slated to report results on Oct 31.

Fidelity National Information Services, Inc. (NYSE:FIS) has an Earnings ESP of +0.13% and a Zacks Rank #3. The company is slated to release results on Nov 5.

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