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Xerox' Q4 Earnings Show Trends in Copier and Printer Rental Market

Sat, 04/19/2014 - 06:31 -- Erin

Fundamentally, market trends can be track through data. When it comes to the copier and printer rental industry, the leading manufacturers can show more of their hand than they intend to when it comes to releasing quarterly earning reports.

When Xerox released some disappointing Q4 earnings, a lot more could be gleaned from the data than might be initially expected – especially when it comes to the rental industry.

Xerox is a $22 billion company known for innovation when it comes to copier and printer technology (they invented xerography). In more recent years, the company has executed some aggressive moves – such as when it acquired ACS (Affiliated Computer Services).

This well-known company has a foothold in the repertoire of several desirable areas, such as schools, small businesses (SMBs), government agencies, commercial areas and several Fortune 1000 companies.

All of the above markets, coincidentally, are ones often targeted for business by copier and printer rental companies.

While Xerox prides itself on having one of the broadest IT portfolios in the industry, the data surrounding its Q4 earnings say quite a bit about where its industry is heading.

Xerox beat analyst predictions, displayed 42 percent revenue growth and increased its earnings per share by 11 percent. In essence, the company beat expectations on every front. It was hindered, however, by the amount of charges levied against it. These charges were reportedly bolstered by Xerox' responsibility for Fuji Xerox’ after-tax restructuring

What all of these financial results do is focus attention on Xerox’ business structure – questions arise as to what the company is selling and who they are selling to.

And the meaning for the copier and printer rental market is clear.

According to an article published on the NASDAQ website, “Sales revenues for the quarter grew 4 percent from the prior-year quarter to $2.07 billion, and service, outsourcing and rental revenues climbed 83 percent from a year ago to $3.75 billion. However, finance income decreased 8 percent to $162 million from the same quarter last year.”

Xerox’ rental revenues climbed 83 percent in a year. That’s a pretty impressive figure when considering it from a market trending standpoint. From this data, it is possible to surmise that companies are renting to own, or leasing their copiers and printers – rather than buying them flat out.

While Xerox has been a household name for awhile now, it may turn its attentions towards profitable copier and printer rental procedures as there seems to be an increased demand for that sector.

Vernon Computer Source offers printer rentals from some of the industry's leading manufacturers, such as Canon, Xerox, and others. For a free, no-hastle FlexQuote, please visit the company's website at www.vernoncomputersource.com.