Xerox (NASDAQ:XRX) Issues Earnings Results

Xerox (NASDAQ:XRX) issued its quarterly earnings results on Thursday, April 30th. The information technology services provider reported ($0.11) earnings per share for the quarter, topping the consensus estimate of ($0.20) by $0.09, Zacks reports. The business had revenue of $1.85 billion during the quarter, compared to the consensus estimate of $1.78 billion. Xerox had a negative return on equity of 12.08% and a negative net margin of 14.09%.The company’s quarterly revenue was up 26.7% on a year-over-year basis. During the same quarter last year, the company earned ($0.06) earnings per share.

Here are the key takeaways from Xerox’s conference call:

• Leadership change and sharper focus: Louie Pastor is now CEO, eliminated the President/COO role to drive cost discipline, and set three clear priorities — stabilize revenue, increase profitability, and reduce leverage — emphasizing faster execution and accountability.
• Q1 showed improving operating trends: Revenue was $1.85 billion (up ~27% reported due to Lexmark; pro forma -4% organic), and adjusted operating margin reached 3.9%, up 240 bps year?over?year — management called this a turning point in profit trajectory.
• Guidance reaffirmed with explicit targets: Xerox reaffirmed 2026 targets of >$7.5B revenue, $450M–$500M adjusted operating income, roughly $250M free cash flow, and expects ~1.5 turns of leverage reduction by year?end conditional on execution.
• Near?term leverage and cash strain despite liquidity actions: The TPG/Angelo Gordon JV raised >$400M but increased near?term debt, pro forma gross leverage is ~7x TTM EBITDA, Q1 free cash flow was a use of $165M, and core non?finance debt remains about $3B.
• Ongoing operational headwinds: Management flagged higher memory prices, extended lead times, rising oil-related input/transport costs, and persistent mid?range print softness, which could pressure margins and timing of revenue recovery.

Xerox Stock Performance

NASDAQ XRX traded up $0.10 on Wednesday, hitting $3.10. 4,434,020 shares of the company’s stock traded hands, compared to its average volume of 5,028,488. The firm’s 50-day moving average price is $1.85 and its two-hundred day moving average price is $2.18. The firm has a market capitalization of $406.07 million, a PE ratio of -0.37 and a beta of 2.28. The company has a current ratio of 1.18, a quick ratio of 0.85 and a debt-to-equity ratio of 14.04. Xerox has a 1-year low of $1.19 and a 1-year high of $6.80.

Xerox Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Tuesday, June 30th will be paid a dividend of $0.025 per share. This represents a $0.10 annualized dividend and a yield of 3.2%. The ex-dividend date is Tuesday, June 30th. Xerox’s payout ratio is presently -1.20%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Gabelli Funds LLC boosted its holdings in Xerox by 4.5% in the second quarter. Gabelli Funds LLC now owns 58,000 shares of the information technology services provider’s stock valued at $306,000 after purchasing an additional 2,500 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Xerox by 4.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 69,047 shares of the information technology services provider’s stock valued at $333,000 after buying an additional 2,838 shares during the last quarter. CANADA LIFE ASSURANCE Co lifted its holdings in shares of Xerox by 1.9% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 164,566 shares of the information technology services provider’s stock valued at $868,000 after buying an additional 3,138 shares during the period. Cetera Investment Advisers lifted its holdings in shares of Xerox by 33.2% in the 2nd quarter. Cetera Investment Advisers now owns 17,320 shares of the information technology services provider’s stock valued at $91,000 after buying an additional 4,319 shares during the period. Finally, Private Management Group Inc. boosted its stake in shares of Xerox by 0.5% in the third quarter. Private Management Group Inc. now owns 1,051,054 shares of the information technology services provider’s stock worth $3,952,000 after buying an additional 4,986 shares during the last quarter. Hedge funds and other institutional investors own 85.36% of the company’s stock.

Analyst Upgrades and Downgrades

XRX has been the topic of a number of research analyst reports. Zacks Research raised shares of Xerox from a “strong sell” rating to a “hold” rating in a report on Thursday, April 30th. Citigroup restated a “neutral” rating and issued a $2.50 target price (down from $3.50) on shares of Xerox in a research note on Friday, January 30th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Xerox in a research report on Monday, April 27th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average target price of $2.50.

Xerox Company Profile

Xerox Holdings Corporation (NYSE: XRX) is a global provider of document management technology and services. The company designs and manufactures a broad range of multifunction printers, production printers, digital presses and related consumables. In addition to its hardware offerings, Xerox delivers software and workflow automation solutions, managed print services and cloud-based document platforms that help organizations optimize their information-intensive processes.

Founded in 1906 as The Haloid Photographic Company, Xerox pioneered xerographic imaging in the late 1940s, launching the first plain-paper copier in 1959.