Xerox Corp., symbol XRX on New York, makes copiers, laser printers and other publishing equipment. Xerox is one of the large cap stocks we analyze in our Wall Street Stock Forecaster newsletter. In February 2010, Xerox paid $6.5 billion for Affiliated Computer Services (ACS), which sells computer outsourcing services. Xerox now gets 80% of its revenue from long-term service contracts and recurring payments for supplies. That cut its risk. Thanks mainly to ACS, Xerox’s sales in the three months ended March 31, 2011 rose 15.8%, to $5.5 billion from $4.7 billion a year earlier. Excluding merger costs and other unusual items, earnings rose 49.1%, to $334 million from $224 million a year earlier. Earnings per share rose 27.8%, to $0.23 from $0.18, on more shares outstanding. Xerox owns 25% of a joint venture with Fuji in Japan. Though its factories suffered no damage from the recent earthquake, several of its suppliers did, and finding alternative suppliers will raise costs in the short term. Xerox is just one of the large cap stocks we analyze in our Wall Street Stock Forecaster newsletter. You can get the latest issue absolutely FREE when you subscribe now. Click here to learn how.
Large cap stocks: Xerox earnings rise in latest quarter
Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.