Xerox (XRX) Expands Service Segment Portfolio To Fuel Sales

Xerox Corporation (NYSE:XRX) recently announced the expansion of its Communication and Marketing Solutions portfolio in addition to enhancing its Document Transaction Processing Services.

The Communication and Marketing Solutions help enterprises manage the way companies share information with their clients. This segment is primarily responsible for enhancing customer relationship. With the expansion of its service portfolio, Xerox now offers Document Publishing Services, Collateral Management Services, Demand Generation Services, Inbound and Outbound Digital Services, Product Information Management Services, Multichannel Communication Services, and Transactional Print and Mail Services.

On the other hand, Xerox’s Document Transaction Processing Servicesstreamline and automate business processes to drive growth, reduce costs and digitalize paper-based workflows. The enhanced Document Transaction Processing Servicesnow provide inbound customer communication, accounts payable and receivable, health records management while digitizing legacy files.

Both the services aim to reduce costs and facilitate front- and back-end business processes. Moreover, Xerox's automation expertise helps enterprises shift to digital transactions from paper transactions. Such enhancements will enable the company clinch more valuable contracts in the future to augment top-line growth going forward.

Headquartered in Norwalk, CT, Xerox is currently reprioritizing investments, and accelerating its restructuring actions and services to drive revenues and margin. As part of the restructuring process, Xerox has decided to implement a three-year strategic transformation program which will target incremental savings of $600 million across all segments. When combined with the ongoing cost-cutting initiatives, Xerox hopes to realize cumulative savings of $2.4 billion over three years. Xerox is also committed to its five-plank strategy which targets portfolio management, global growth, cost transformation, operational excellence, and analytics. With sustained investments to expand geographical footprint and build its services capabilities in areas that offer customer value, Xerox expects to reap significant benefits in the long run.

Xerox currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Accenture plc (NYSE:ACN) , Exponent Inc. (NASDAQ:EXPO) and Navigant Consulting Inc. (NYSE:NCI) . Both Accenture and Exponent carry a Zacks Rank #2 (Buy), whereas Navigant sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Accenture has a modest earnings record, having beated estimates thrice in the four trailing quarters with an average positive surprise of 3.19%. The company’s share price has increased approximately 13.3% year to date.

Exponent has a decent earnings record, having exceeded expectations thrice in the four trailing quarters with an average positive surprise of 9.71%. The company’s share price has rallied approximately 21.7% year to date.

Navigant has a solid earnings record, having surpassed estimates in all of the four trailing quarters with an average positive surprise of 29.31%. The company’s share price has gained approximately 50.4% year to date.

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