Norwalk, CT -- SThursday July 22, Bloomberg posted an article to their website detailing how Xerox soared over the previously set expectations of analysts for the second quarter of 2010. With those results, Xerox is poised to gain more ground this year than initially thought, barring any setbacks.
Xerox reported shares which were up 24 cents per share, which is 3 cents above the initial prediction of 21 cents. Also, while analysts had predicted full year earnings to top out around 85 cents, could now be as high as 88 to 92 cents. Their revenue was also up 2% from from the previous amount, raising the total to $5.5 billion. This in part is due to Xerox’s purchase of Affiliated computer systems for $6 billion during the first quarter of 2010. One analyst, Shannon Cross, noted that “ ‘Demand is coming back,’” and that “‘It shows the synergies with ACS are working -- that’s important to investors.’”
The acquisition of ACS has been a key factor in the success of Ursula Burns’ tenure at Xerox thus far. ACS has made possible several lucrative business deals thus helping to increase revenue and provide new opportunities for Xerox. Even Xerox themselves have figured out a way to use some of the services offered by ACS to trim their own costs, producing great savings and reducing their corporate debt. Currently the debt resides at $9.6 billion, but by September 2011, Xerox expects the debt to go down to around $8 billion. A reduction in debt, and a rise in revenue will potentially allow Xerox to repurchase shares, according to CFO Larry Zimmerman in an interview (the source of this comment was not named).
