So, analysts have spoken.
Xerox is expected to report a 66.7% year-over-year decline in earnings, with a projected Earning-Per-Share (EPS) of just $0.02 for the upcoming quarter.
Let’s translate that EPS into actual dollars:
$0.02 EPS × 115.7M float shares = ~$2.31 million in net profit.
A global company with 16,500 employees, a $1.5 billion acquisition in the pipeline, and $800 million in new high-interest debt…
…will (maybe) squeak out $2.3 million in profit.
That's barely enough to cover one quarter of our brave CEO SB $14.3M compensation package — let alone fund Lexmark or pay the interest on their junk bonds.
There's more: the consensus EPS estimate has been revised downward by 7% over the last 30 days.
Xerox carries a Zacks Rank of #5 (Strong Sell), indicating that analysts are not optimistic about the company's near-term performance.
The company's Earnings ESP (Expected Surprise Prediction) stands at -250%, suggesting a high likelihood of missing earnings expectations.
And in case you thought this was a one-off... Xerox has missed consensus EPS estimates in each of the last four quarters.
SB and his gang talk about "reinvention"...
...when the only thing being reinvented is how to consistently underperform.