Dallas, Texas 05/02/2014 (FINANCIALSTRENDS) – Xerox Corp (NYSE:XRX) saw its price target getting raised by analysts at Brean Capital last week on the back of better than expected earnings reported in 1Q14 by the tech major. The new price recommended is $15 as against the previous PT of $13. The increase comes on the back of a sustained push by the tech firm to increase its revenue stream from the services part of its business in tandem with monetizing its other business segments effectively to increase its earnings per share over the next few quarters.
Xerox Corp (NYSE:XRX) Chairman of the Board and Chief Executive Officer Ursula M. Burns in his post earnings call comments has been quoted to have stressed the importance his firm is giving to the services sector by stating that, “ Today, Services represents 57% of our revenue and we continue to expect that number to grow to two-thirds by 2017. The shift over time will drive improved revenue growth. To realize this growth we need to strengthen and differentiate our portfolio. We participate in some very attractive segments of the Services and Document Technology market. We are investing in these areas to increase the value we bring to our customers”.
Net income in 1Q14 came down by 5 percent due to an increase in its investments going into its government health care sector, while its revenue from document tech business went down in comparison to previous quarters. Net income came in at $281 million, which translated into a $0.23 earnings per share for the reporting period. In comparison net income came in at $296 million in 1Q13. In spite of the earnings dip, the markets reacted positively to the earnings report since the analysts covering the stock had pegged EPS for 1Q to come in at $0.24.