Boston, MA 10/29/2013 (wallstreetpr) – Xerox Corporation (NYSE:XRX) has been in the manufacturing, development and marketing of various categories of document management equipment for several years now. In the past few decades the company has seen a quick and fast realigning of its services to include software solutions for document management. This now forms the life-line for the range of services Xerox performs in mature markets. In emerging markets its hardware models yet command good market and it will be several years before these too move to a more dedicated and unified document management systems.
However, the company has been under observation by SEC for alleged accounting practices along with an affiliate – Computer Services Unit. The investigations have already ordered several employees to disclose information regarding financial practices. In the second week of October, the company has announced quarterly dividends – $0.0575 for shareholders who continue to hold these shares as of December 31, 2013. The dividend is payable January 31, 2014 and will have a forward yield of 2.16%.
In the third week of October, the Q3 results that Xerox announced indicated its higher than expectation results. The EPS was $0.26 higher by $0.01. The revenue earned was $5.26 billion, losing out on expectations by $0.08 billion.
Despite an increase in service sector revenues the company saw fall of revenue in its second sector- document technology. Here the fall in revenue was 4% while the services revenue increased by 3% as expected.
However, just after the announcement of Q3 results the company saw a fall in share rpises. The guidance the company issued for the fourth quarter is weak as well. The company has proposed that in the fourth quarter, the company may see a Q4 EPS of $0.28 to $0.30 against $0.33 that analysts have attributed Xerox may grow in the next quarter.