Tags: Xerox | tech | giants | XRX

Xerox Goes Head-to-Head with Tech Giants in New Arena

By    |   Monday, 20 Aug 2012 07:04 PM

Xerox (XRX) is a hugely powerful brand name in a rapidly changing environment. Quick to move with the times, the one-time copier giant is trying hard to win with business process outsourcing, an arena in which it goes head-to-head with tech giants such as IBM (IBM) and Oracle (ORCL).

Xerox provides the industry's broadest portfolio of business process and IT outsourcing support, document technology and solutions, management said in a recent filing.

“Through our business process and IT outsourcing we offer global services from claims reimbursement and electronic toll transactions to the management of HR benefits and customer care centers to the operation of a company's technology infrastructure,” management said.

“Our document technology offerings serve businesses of all sizes and across industries to deliver solutions for both the workplace and production print environments.”

Approximately 83 percent of 2011 total revenue was annuity-based revenue. That included contracted services, equipment maintenance, consumable supplies and financing, among other elements. The remainder is from equipment sales.

Xerox has a market cap of $9.69 billion in a sector, office electronics, where the average company size is $849.25 million. Its trailing 12-month P/E ratio is 8.33 and its five-year projected price-to-earnings-growth (PEG) ratio is 6.82, compared to 3.55 for the sector.

Its projected earnings per share growth for the coming year is 8.33 percent, compared to a sector average of 8.78 percent.

Headwinds


Analysts are mixed on XRX, with buy or outperform calls from Lehman Brothers and Ned Davis Research. Zacks Investment Research rates the stock a sell.

“Although Xerox’s Services business is improving, economic weakness in Europe along with stiff competition from peers are significant headwinds going forward,” Zacks analysts said on Aug. 12.

Xerox next reports on Oct. 19.

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2012-04-20
Monday, 20 Aug 2012 07:04 PM
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