Updated: 5:07 PM EDT XRX closed at 7.73. GO XRX!!
Earnings Preview: Xerox Corp. --
The consensus estimate is 11c for EPS and $3.72B for revenue, according to First Call. Management provided Q2 guidance on its last earnings call of 10c to 12c, which was below the then consensus of 14c. The company predicted FY09 EPS of 50c to 55c, also below the then consensus of 58c.
On that same call management reiterated that it will deliver $250M in savings throughout 2009 from previous restructuring actions, as well as an additional $300M in non-restructuring cost and expense reductions. The company also said it's on track for $300M in capital expenditures and $1.3B in cash from operations for FY09, driven by cost actions and working capital improvements. During Q2 Xerox unveiled a new office machine, the 'ColorQube', that promises to cut the cost of color printing by 62%. Xerox doesn't expect the printer to contribute much to earnings until 2010. The company is bracing for a long period of penny-pinching among customers to last for at least the next couple of quarters, as printing and copying are discretionary costs and the first eliminated to shrink budgets."