https://www.news.xerox.com/news/Xerox-releases-third-quarter-2019-results
18 replies (most recent on top)
That’s why they moved most of accounting offshore, so no one knows what they are doing. Those people offshore have no idea what they are doing and don’t care
Looking up???? Not for me. I am a soon-to-be-unemployed worker that will have to train my replacement. A few foreign workers with H1-B visas will be at corp for 5 weeks starting 11/4 to learn the ropes, then return to their home country to train the rest of the workers.
If they want to prove their numbers are right do this:
#1 reinstate raises declined this year
#2 lift the travel ban
#3 hire back folks from forced into HCL
Won't happen but a man can dream
If you hear them say “blockchain”, RUUUUNNNNNNNN!
AI, because Xerox is able to compete with Amazon, Microsoft, Google and Facebook. Lol.
I see revenue now on a 5% to 15% decline over the last 12 months and accelerating (no surprise) and costs only out-matched by a decline in costs (us). At some point, likely in 2020, there won’t be any more costs to cut (except for John’s salary!). Also, the spread between operating income and expenses as widened, likely from the Xerox’s hard push to demand payment for services within 30 days while not paying bill until +90. I do wonder if the decision not to sell the customer financing business is because the one-hit boost in money from selling the business would not cover-up the immediate, sharp decline in revenue that this business generates. The statement of ‘Focus investments in growing market segments such as AI and IoT’ looks to be bogus as there is no indication of new spending in R&D, M&A or people (LOL). Almost as alarming, I also do not see the company addressing the big debt note it has coming due in 2020, which is going to be very costly due to Xerox’s junk bond status (Moody’s rating is Baa3 as of December). In addition, the statement that ‘~$775M of the $1.2B net unfunded is attributable to certain plans that do not require funding, Overall net global funded status of ~88%’ is a complete farce. Take-out the foreign pensions, which have different funding rules, and the non-qualified executive pensions in the US, which are always unfunded, and the result is that RIGP is likely under 80% funded already; but it won’t be official until 2020. Overall, the extra money that Xerox is generating looks to be all going into buybacks, which looks good on paper and even better to the computers that do a lot of the trading for institutional investors as they look at the ratios and not the underlying data driving results. As other people said, it’s like the owner of White Star Lines telling passengers, i.e. investors, that the Titanic if perfectly safe after hitting the iceberg while he’s running for the nearest lifeboat.
Books may have been cooked-LE should evaluate BO personal finances. Or not. But what has been misrepresented to Wall Street is clear: future growth strategy. They are basically going to look at AI and IoT companies to acquire. That’s it. AI: no market. IoT: good luck.
Or not
I smell cooking....books perhaps, certainly fools have pushed up the stock price short term but maintaining a bubble will be difficult as revenue contines to fall.
How to make a small fortune from Xerox stock?
Easy, start with a big fortune and listen to the nonsense from vasaline and co.
How can pension be funded at 88%. Doesn’t add up, it was @81% in 1Q 2019, then subtract employees who were rebadged as HCL who rolled over/pulled their pension (RIGP) out in addition to other employees who retired or left the company. Also they haven’t put any additional funds into RIGP. Talk about misleading reporting.
Good comments on this article, at least some people look past the headlines.
https://seekingalpha.com/news/3510548-xerox-plus-2-percent-earnings-beat-raised-fy2019-outlook
Looking Up? The equipment revenue declines over the past years continue and have finally caught up to the post sale revenues in a big way. If you understand this business at all declines in post sale revenues are not good. Iceberg ahead!!!
Shares up 15% today.
88% pension funding that shows on today’s slide has the exact numbers and wording as on the investors day slide from q4 2018. Looks like a cut and paste.
Yes - 88% net global funded.
Did I read correctly that pension is now 88% funded? Makes no sense to me based on the former 80.n% number I received in the mail and the contributions from the deck. Anyone?
You mean slashing and buybacks are up. Revenue is down 6.5 percent.
Smoke and mirrors, that's all it is. Zerox is doomed.