Xerox Corporation XRX reported mixed third-quarter 2017 results with year-over-year increase in earnings despite lower revenues. GAAP earnings from continuing operations were 67 cents per share compared with 66 cents in the year-ago quarter.Adjusted earnings from continuing operations for the reported quarter were 89 cents per share compared with 84 cents in the year-earlier quarter. The year-over-year increase in earnings despite lower revenues was primarily attributable to lower operating expenses. Adjusted earnings comfortably beat the Zacks Consensus Estimate of 79 cents.Total revenue for the quarter was $2,497 million compared with $2,629 million in the year-earlier quarter. Revenues missed the Zacks Consensus Estimate of $2,509 million.Xerox Corporation Price, Consensus and EPS Surprise Xerox Corporation Price, Consensus and EPS Surprise | Xerox Corporation QuoteMarginsAdjusted gross profit for the quarter was $1,003 million compared with $1,050 million in the prior-year period. Adjusted gross profit margin for the quarter was 40.2% compared with 39.9% in the prior-year quarter. Adjusted operating margin was 12.2%, down 40 basis points year over year.Financial PositionAs of Sep 30, 2017, Xerox had cash and cash equivalents of $1,781 million while long-term debt was $5,235 million. Net cash used in operating activities for the quarter was $385 million compared with operating cash flow of $370 million in the year-ago period, bringing the respective cash flow tallies for the year to $53 million and $522 million.Updated GuidanceXerox updated its full-year 2017 guidance. It currently expects GAAP earnings from continuing operations in the range $1.97 to $2.13 per share (compared with previous range of $1.84 to $2.08) and adjusted earnings in the range $3.28 to $3.44 (compared with earlier range of $3.20 to $3.44). The company expects cash flow to be around $800 - $1,000 million, up from earlier range of $700 - $900 million.Xerox currently holds a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Avis Budget Group, Inc. CAR, Vectrus, Inc. VEC and Capita plc CTAGY, each carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Avis Budget is currently trading at a forward P/E of 15.6x.Vectrus is currently trading at a forward P/E of 16.7x.Capita plc is currently trading at a forward P/E of 10.5x.Looking for Stocks with Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot trades we're targeting>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Avis Budget Group, Inc. (CAR): Free Stock Analysis Report Vectrus, Inc. (VEC): Free Stock Analysis Report Xerox Corporation (XRX): Free Stock Analysis Report CAPITA PLC (CTAGY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research