Xerox's Earnings to Rise, But Still Depressed

Xerox blamed the slump in the global economy for its diminished prospects. It said 6 cents of the reduction in first-quarter net will be the result of Xerox's share of Fuji Xerox's restructuring and lower-than-expected profit at Fuji Xerox. It added that the balance of the reduction will result from an industry-wide slowdown in technology spending, putting pressure on revenue and earnings.

Xerox's total revenue in January and February declined 18%, including a 5-point currency impact, largely due to lower sales of equipment and printer-based supplies.

The company said it's on track to deliver $250 million in savings this year from previous restructuring actions, and has identified an additional $300 million in cost-and-expense reductions that will flow through to earnings and cash generation.

Xerox Financial Facs Company XEROX Ticker XRX Industry Office Electronics TheStreet.com Ratings Reward Grade B- TheStreet.com Ratings Risk Grade D TheStreet.com Ratings Overall Grade C TheStreet.com Ratings Recommendation Hold Recent Price 5.19 Latest Fisc. Yr. Revenue ($Mil.) 17,608.0 Market Cap ($Mil.) 4,488.2 Total Assets ($Mil.) 22,447.0 Total Debt ($Mil.) 9,032.0 Earnings Before Interest & Taxes ($MiL.) 1,727.0 Cash Flow from Operations ($Mil.) 939.0 EPS - Latest Avail. Fiscal Yr. 0.26 EPS - Curr. Year Consensus 0.95 EPS - Next Yr. Consensus 1.03 Price/Book Ratio 0.7x Ret'n on Equity (%) 3.7 P/E - Current Year 5.5x P/E - Next Year 5.0x Dividend Yield (%) 3.97 Source: TheStreet.com Ratings. (Data as of 3/13/2009.) For an explanation of our ratings, click here..