Information technology services provider
) is scheduled to report its first quarter 2014 results before
the opening bell on April 22. In the last reported quarter,
Xerox's adjusted earnings were in line with the Zacks Consensus
Estimate. Let's see how things are shaping up for this
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Growth Factors in the First Quarter
Xerox expects the Services segment to fetch 66% of total revenues
by 2017, up from 55% in 2013. To achieve this objective, Xerox is
focusing more on vertical markets like healthcare. Xerox recently
entered into a $28 million contract with PatientPoint to
implement PatientPoint technology to help improve healthcare.
Additionally, Xerox Innovation Group announced that a suite of
healthcare research projects conducted in India by Xerox Research
Centre India (XRCI) and Xerox Research Center Webster (XRCW) in
New York use video cameras and data analytics to monitor a
The company has already begun to reap huge benefits from Medicaid
Management Information System (MMIS) through the successful
implementation and CMS (Centers for Medicare and Medicaid
Services) Certification in all the 31-state Medicaid programs.
Also, Xerox is looking forward to expand its offerings through
inorganic measures to add more clients to its portfolio.
Additionally, a few days back, Xerox-Government and
Transportation Sector Technology delivery Center achieved ISO
9001 quality management system certification for superior
operational performance and enhanced commitment to customers.
Despite focused attempts to restructure its business, our proven
model does not conclusively show that Xerox is likely to beat
earnings this quarter as it lacks the key ingredients for a
: Expected Surprise Prediction or ESP, which represents the
difference between the Most Accurate estimate and the Zacks
Consensus Estimate, is at 0.00%. This indicates a likely in line
earnings for the shares.
Zacks Rank #3 (Hold): Xerox's Zacks Rank #3 reduces the
predictive power of ESP. Note that stocks with Zacks Ranks of #1,
#2 and #3 have a significantly higher chance of beating earnings.
However, when combined with 0.00% ESP, the Zacks Rank #3 fails to
conclusively predict an earnings surprise for Xerox. Meanwhile,
we caution against stocks with Zacks #4 and #5 Ranks (Sell rated
stocks) going into the earnings announcement.
Other Stocks to Consider
Here are some companies you may want to consider as our model
shows that these have the right combination of elements to post
an earnings beat this quarter:
Aspen Insurance Holdings Ltd.
), earnings ESP of +6.12% and Zacks Rank #1 (Strong Buy).
Alaska Air Group, Inc.
), earnings ESP of +7.14% and Zacks Rank #1 (Strong Buy).
Envision Healthcare Holdings, Inc.
), earnings ESP of +5.26% and Zacks Rank #1 (Strong Buy).