Boston, MA 04/24/2014 (wallstreetpr) – Xerox Corp (NYSE:XRX)‘s first quarter earnings did not come out to be strong but still its shares managed to record a climb yesterday. On Wednesday, apart from disclosing its first quarter financial performance, Xerox also revealed a higher compensation package to its long time CEO Ursula Burns. For the year 2013, Burns is paid $10.3 million, closer to his previous compensation of $13 million and $12.9 million in the year 2012 and 2011 respectively.
Not So Solid Quarter; Dull Outlook
Experts do not view Xerox Corp (NYSE:XRX)’s previous quarter as extraordinary, given the fact that its CEO Burns kept promising effective improvement to be visible for the last four years. However, as the company is shifting from pure document based operation to those of services, its total revenue fell 2% in the quarter to $5.1 billion in the last one year. Revenue from the critical services stood flat this time, while its document technology revenue fell 4.5%. Therefore, it is not possible to call its service operations as anywhere near to success. At the same time, its net income too fell sharply by 5% to $281 million.
Leaving aside the first quarter metrics, Xerox Corp (NYSE:XRX)’s second quarter and full year guidance too failed to excite for any reason. The company lowered its outlook for Services segment for both short term and long term. As per the latest statement, GAAP EPS for the second quarter is anticipated to come in between $0.21-$0.23 per share, while its adjusted EPS is forecasted in between $0.25-$0.27 per share. For the full-year 2014, GAAP earnings per share is kept at $0.90-$0.96 and adjusted EPS is estimated at $1.07-$1.13.
Brean Raises PT
Despite soft first quarterly performance, analyst at Brean Capital has revised his price target for the company upward from $13 to $15, while assigning a ‘buy’ rating to the stock. The revision is on the basis of the fact that Xerox Corp (NYSE:XRX)’s strong positioning now appears as an opportunity to drive its shares higher. The company’s inclined focus towards incremental earnings power, Service and multiple expansion is its main advantage.