Xerox (NYSE:XRX) Shares Gap Down on Disappointing Earnings

Xerox Holdings Co. (NYSE:XRX) gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $16.42, but opened at $14.60. Xerox shares last traded at $14.21, with a volume of 2,616,540 shares.

The information technology services provider reported $0.06 EPS for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.29). The company had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.53 billion. Xerox had a net margin of 0.01% and a return on equity of 9.41%. The business’s revenue was down 12.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.49 earnings per share.

Xerox Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 30th. Stockholders of record on Friday, March 29th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Wednesday, March 27th. This represents a $1.00 annualized dividend and a dividend yield of 6.83%. Xerox’s dividend payout ratio is presently -500.00%.

Analyst Ratings Changes

A number of research firms have weighed in on XRX. JPMorgan Chase & Co. upped their target price on Xerox from $16.00 to $18.00 and gave the stock an “underweight” rating in a research report on Friday, January 26th. StockNews.com raised shares of Xerox from a “hold” rating to a “buy” rating in a research note on Tuesday, April 16th.

Institutional Investors Weigh In On Xerox

A number of hedge funds have recently bought and sold shares of XRX. SG Americas Securities LLC boosted its holdings in Xerox by 65.0% during the third quarter. SG Americas Securities LLC now owns 76,258 shares of the information technology services provider’s stock valued at $1,196,000 after acquiring an additional 30,045 shares during the period. State of Alaska Department of Revenue raised its position in shares of Xerox by 402.9% during the third quarter. State of Alaska Department of Revenue now owns 70,433 shares of the information technology services provider’s stock valued at $1,105,000 after buying an additional 56,427 shares during the last quarter. Asset Management One Co. Ltd. acquired a new position in shares of Xerox during the third quarter valued at about $818,000. Hexagon Capital Partners LLC raised its position in shares of Xerox by 87.2% during the third quarter. Hexagon Capital Partners LLC now owns 1,627 shares of the information technology services provider’s stock valued at $26,000 after buying an additional 758 shares during the last quarter. Finally, Maryland State Retirement & Pension System acquired a new position in shares of Xerox during the third quarter valued at about $654,000. 85.36% of the stock is currently owned by institutional investors.

Xerox Price Performance

The stock’s 50-day moving average price is $17.56 and its 200 day moving average price is $16.32. The firm has a market cap of $1.82 billion, a price-to-earnings ratio of -70.85 and a beta of 1.56. The company has a quick ratio of 0.91, a current ratio of 1.14 and a debt-to-equity ratio of 1.06.

Xerox Company Profile

Xerox Holdings Corporation, together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally. The company operates through two segments, Print and Other; and FITTLE.