Xerox (NYSE:XRX) Shares Gap Down After Earnings Miss

Xerox Holdings Co. (NYSE:XRX)’s share price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. 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 traded.

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

Xerox Dividend Announcement

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 issued a $0.25 dividend. The ex-dividend date is Wednesday, March 27th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 6.78%. Xerox’s dividend payout ratio (DPR) is presently -500.00%.

Analyst Ratings Changes

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

Institutional Investors Weigh In On Xerox

A number of institutional investors and hedge funds have recently made changes to their positions in XRX. SummerHaven Investment Management LLC grew its stake in shares of Xerox by 1.3% in the fourth quarter. SummerHaven Investment Management LLC now owns 45,742 shares of the information technology services provider’s stock valued at $838,000 after buying an additional 597 shares in the last quarter. Yousif Capital Management LLC lifted its stake in Xerox by 1.0% in the fourth quarter. Yousif Capital Management LLC now owns 64,642 shares of the information technology services provider’s stock valued at $1,185,000 after acquiring an additional 615 shares during the last quarter. Hexagon Capital Partners LLC grew its position in shares of Xerox by 38.7% in the 4th quarter. Hexagon Capital Partners LLC now owns 2,257 shares of the information technology services provider’s stock valued at $41,000 after acquiring an additional 630 shares during the period. Arden Trust Co increased its stake in shares of Xerox by 1.8% during the 4th quarter. Arden Trust Co now owns 36,561 shares of the information technology services provider’s stock worth $670,000 after purchasing an additional 661 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund raised its holdings in shares of Xerox by 3.0% in the 3rd quarter. Oregon Public Employees Retirement Fund now owns 33,635 shares of the information technology services provider’s stock valued at $528,000 after purchasing an additional 975 shares during the period. Institutional investors own 85.36% of the company’s stock.

Xerox Price Performance

The company has a current ratio of 1.14, a quick ratio of 0.91 and a debt-to-equity ratio of 1.06. The firm has a market capitalization of $1.83 billion, a price-to-earnings ratio of -73.80 and a beta of 1.56. The company’s 50 day moving average is $17.50 and its 200-day moving average is $16.31.

About Xerox

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.