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 changing hands.

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

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 given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 6.83%. The ex-dividend date is Wednesday, March 27th. Xerox’s dividend payout ratio is presently -500.00%.

Wall Street Analysts Forecast Growth

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

Hedge Funds Weigh In On Xerox

A number of institutional investors have recently added to or reduced their stakes in XRX. FNY Investment Advisers LLC acquired a new position in shares of Xerox in the fourth quarter valued at $25,000. GAMMA Investing LLC bought a new stake in shares of Xerox in the fourth quarter valued at about $25,000. Hexagon Capital Partners LLC boosted its position in shares of Xerox by 87.2% in 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 acquiring an additional 758 shares during the period. TFO Wealth Partners LLC boosted its position in shares of Xerox by 30,127.3% in the fourth quarter. TFO Wealth Partners LLC now owns 3,325 shares of the information technology services provider’s stock valued at $61,000 after acquiring an additional 3,314 shares during the period. Finally, International Assets Investment Management LLC boosted its position in shares of Xerox by 1,733.2% in the fourth quarter. International Assets Investment Management LLC now owns 4,583 shares of the information technology services provider’s stock valued at $84,000 after acquiring an additional 4,333 shares during the period. 85.36% of the stock is currently owned by institutional investors and hedge funds.

Xerox Stock Performance

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

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.