Xerox Earnings Preview: Analysts Expect Higher EPS, Revenue

Xerox (NYSE: XRX) unveils its next round of earnings this Tuesday, October 25, 2011. Here's Benzinga's essential guide to Xerox's third quarter earnings report.

Earnings and Revenue:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of 25 cents/share and revenues of $5.6 billion. Xerox's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 22 cents/share on revenues of $5.43 billion. We'll have to wait for Tuesday to see if Xerox falls in line with analyst expectations and reports an estimated increase in both EPS and revenue from the year-ago quarter.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

At last check, shares of Xerox were trading at $7.63. Shares are down 32.8% year to date. For a full 12 months, the return has declined by 32.8%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Xerox is a Moderate Buy. This rating has strengthened slightly over the past ninety days.

Competitors:

Wondering how some of the other information technology companies are doing? Here are a few of Xerox's peers in that sector.

• Canon, Inc. (ADR (NYSE: CAJ): Strong Buy with a $0.54 recent quarter EPS
• Chyron (NASDAQ: CHYR): Strong Buy with a $0.00 recent quarter EPS
• Eastman Kodak Company (NYSE: EK): Moderate Sell with a -$0.62 recent quarter EPS
• Hewlett-Packard Company (NYSE: HPQ): Hold with a $1.10 recent quarter EPS

The office automation and equipment company's industry has seen price/earnings growth of 1.6% during the current fiscal year.

Finally, a description of the company's main areas of operation: Xerox engages in the development, manufacturing, marketing, services and finance of document equipment, software, solutions and services worldwide.

Take Action:

Now that you've gotten an advanced peak at Xerox's upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

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