Diamonds and Dogs
Xerox (XRX) having a good day. The printer and copy company is up 11% back near its 52 week high following earnings. Xerox easily beat expectations by 21 cents as sales rose 6.5% to $2.2 billion ahead of estimates. Operating cash flow was $356 million, up $82 million year-over-year. Free cash flow was $339 million, up $88 million year-over-year. Adjusted operating margins were 12.1%, up 120 basis points year-over-year. The company completed $368 million of share repurchases through the third quarter, expecting at least $600 million in total for the year. The company also raise 2019 guidance despite industry headwinds.
Two highflyers coming back to Earth. Beyond Meat (BYND) is down 19% despite beating top and bottom-line estimates and guiding 2019 revenue above consensus. Beyond Meat's lockup for insiders expired today. Shares traded are four six times the normal volume. GrubHub (GRUB) is down 43% after missing top and bottom-line estimates and guiding fourth quarter revenue below consensus. Business has been affected by changing dynamics in the food delivery sector with increase competition from Uber Eats, DoorDash and Postmate. One analyst downgraded it to Underperform from Outperform lowering his target to $34 from $91. Thanks for nothing.
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