Gabelli & Company Expects Xerox (XRX) To Raise Guidance

Gabelli & Company analyst Hendi Susanto reiterated her Buy rating for shares of Xerox Corporation (NYSE: XRX).

Susanto believed that Xerox Corporation's current 2010 guidance was too conservative and that the company may announce higher guidance numbers at its May 4 analyst day.

While Xerox Corporation's EPS is currently forecast to be in the range of 75 to 85 cents, Susanto believes earnings are more likely to come in at $1.05 per share.

The Gabelli & Company analyst wrote, "Xerox delivered 1Q10 performance, confirmed positive progress on integration of ACS and targeted 2010 earnings and cash flow from operations. We expect continuing stability of Xerox’s annuity business and incremental improvement in Xerox’s top line growth and cost structure along with its cost reduction and integration of ACS. We continue to maintain our BUY recommendation on Xerox."