) recently offered an overview of its long-term strategic plans
to increase shareholder value through an optimum mix of margin
expansion and growth in services, focus on vertical markets and
innovative technology and services. The news boosted investor
sentiment as the shares gained 4% to close at $10.69 on Nov 12.
The Key Initiatives
In order to better adapt to the evolving market trends, Xerox has
continually realigned its business model by expanding indirect
distribution channel and streamlining its supply chain and
product portfolio. Going forward, the company expects to
increase revenues from the Services segment
to 66% of total revenue by 2017 from 56% at present.
To achieve this objective, Xerox is
focusing more on vertical markets
. 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 31 state Medicaid
In addition, proprietary software developed by its subsidiary
PARC has gained wide acceptance in the industry to combat fraud,
waste and abuse in healthcare applications. Xerox has also
launched health insurance exchanges in Nevada, Kentucky and other
states to further strengthen its position in the healthcare
FARO TECH INC (FARO): Free Stock Analysis
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In tune with the increased demand for connectivity and mobility,
Managed Print Services
) with its
IT outsourcing capabilities
. MPS enables clients to gain visibility and control of printing
to save money, improve productivity, boost environmental
sustainability and document security. The integration will
automate workflow with technology and consulting services to help
clients meet the requirements of mobile workforce.
At the same time, Xerox is continuing its thrust for
leadership in Document Technology
with innovative products in order to meet the demands of
customized communications in digital printing. These include
waterless and inkjet-based solutions that enable print providers
to deliver tailor-made services.
Xerox also provided its initial guidance for 2014 and reiterated
its guidance for full year 2013. GAAP earnings for 2014 are
expected to be in the range of 93 cents to 99 cents and adjusted
earnings are expected between $1.10 and $1.16. The company
expects operating cash flow to range from $1.8 billion to $2.0
billion in 2014.
Xerox increased its authorization for share repurchases by $500
million to bring the tally to approximately $1.5 billion. The
company anticipates spending up to $500 million on acquisitions
and $300 million on dividends in 2014.
Headquartered in Norwalk, CT, Xerox is a leader in the
development, manufacture, marketing, servicing and financing of
document equipment across the world. The company also provides
extensive leading-edge document technology, services, software
and genuine Xerox supplies for graphic communication and office
printing environments of any size.
Xerox currently has a Zacks Rank #4 (Sell). Other players in the
industry worth reckoning include
FARO Technologies Inc.
MKS Instruments, Inc.
Mattson Technology Inc.
), each carrying a Zacks Rank #2 (Buy).