9. Xerox (XRX) provides a portfolio of services in document technology and software, and a diverse range of business process and information technology outsourcing support. The company operates in three segments: technology, services, and others.
Total revenue for the second quarter of 2011 increased 2% to $5.6 billion. Relative to other segments, the services segment contribution was higher at 48% of total sales, vs. 46% in the same quarter prior year. The technology segment contributed about 45% of sales.
Operating margin in the second quarter of 2011 stood at 10.4%, expanding 30 basis points from the same quarter last year. Net income stood at $327 million vis-à-vis $236 million in the same quarter of 2010. The scaling up of the high-margin service segment and operational enhancements boosted profitability. The stock is trading at 6.9 times its estimated 2011 earnings and a consensus of analysts expect 54% upside from the current levels. Of the analysts polled, 50% rate it a buy.
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