For Immediate Release
Chicago, IL – January 22, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Meredith Corporation (MDP), Xerox Corporation (XRX), Canon (CAJ), Hewlett-Packard (HPQ) and Lexmark (LXK).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Thursday’s Analyst Blog:
Meredith Tops Zacks Consensus
Meredith Corporation (MDP), a leading media and marketing company, recently reported second-quarter 2010 results that exceeded Zacks’ expectations on the heels of improved advertising performance at its National and Local Media groups, lower operating expenses, increased readership and online traffic.
The quarterly earnings of 49 cents a share outdid the Zacks Consensus Estimate of 45 cents, but remained in line with the prior-year quarter result. However, earnings surged 44% sequentially. On a reported basis, earnings came in at 42 cents a share, up 50% from 28 cents delivered in the year-earlier quarter.
Management now expects earnings for third-quarter 2010 in the range of 55 cents to 60 cents a share, and for fiscal year 2010 in the range of $1.90 to $2.05.
Total revenue for the quarter slipped 7% year-on-year to $336.9 million, reflecting a 7% fall in total advertising revenue, a 12% drop in other revenue, partially offset by a 1% rise in circulation revenue. Total operating expenses (excluding one-time items) dipped 7% to $294.2 million.
Xerox Outdoes Estimates
Xerox Corporation (XRX) has posted net income of $221 million or 25 cents per share (before special items) for the fourth quarter of the year. This was higher than the Zacks Consensus Estimate of 22 cents per share. However, net income decreased from $265 million or 30 cents per share (before special items) in the year-ago quarter.
Total revenue declined 3% to $4.2 billion due to economic weakness. Production revenue decreased 4% to $1.3 billion; Office revenue 2% to $2.4 billion; and Other revenue 10% to $545 million.
Post-sale and financing revenue were flat or went down 4% in constant currency. Equipment sale revenue shrank 11% or 15% in constant currency. Gross margin was 39.9% in the quarter, an increase of two percentage points from the prior year quarter.
Annual Results
Xerox reported a net income of was $526 million or 60 cents per share (before special items) for 2009. This is also higher than the Zacks Consensus Estimate of 57 cents per share. Total revenue went down 14% to $15.2 billion.
Financial Position
Xerox ended the year with a cash balance of $3.8 billion. Long-term debt increased to $8.3 billion from $6.8 billion in 2008. Long-term debt-to-capitalization ratio stood at 54% as of December 31, 2009.
Xerox generated $2.2 billion of operating cash flow in 2009, exceeding its full-year expectations by $500 million. Capital expenditures reduced drastically to $95 million from $206 million in the previous year.
Outlook
Xerox anticipates adjusted EPS to lie in the range of 11–13 cents for the first quarter of 2010. Including the impact from acquisition of Affiliated Computer Services, the company expects adjusted EPS to be in the range of 75–85 cents for 2010. These are compatible with the Zacks Consensus Estimates.
Xerox Corporation — headquartered in Norwalk, Connecticut — is engaged in the development, manufacture, marketing, servicing and financing of document equipment across the world. It also provides software and workflow solutions and services worldwide.
Innovation in the managed print services and efficient cost management are some of the positive factors associated with the company. However, intense competition from its peers including Canon (CAJ), Hewlett-Packard (HPQ) and Lexmark (LXK) as well as escalating amount of debt are detrimental to its future. Therefore, we continue to recommend the shares of the company as Neutral.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
