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

Xerox Holdings Co. (NYSE:XRX)’s stock price gapped down before the market opened 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 trading hands.

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

Xerox Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 30th. Stockholders of record on Friday, March 29th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 6.95%. The ex-dividend date of this dividend is Wednesday, March 27th. Xerox’s dividend payout ratio is currently -500.00%.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. JPMorgan Chase & Co. lowered their price target on shares of Xerox from $18.00 to $17.00 and set an “underweight” rating on the stock in a report on Wednesday. StockNews.com cut shares of Xerox from a “buy” rating to a “hold” rating in a report on Wednesday.

Institutional Investors Weigh In On Xerox

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its holdings in Xerox by 10.2% in the third quarter. Vanguard Group Inc. now owns 15,791,263 shares of the information technology services provider’s stock worth $247,765,000 after purchasing an additional 1,464,851 shares in the last quarter. American Century Companies Inc. boosted its holdings in Xerox by 520.9% in the third quarter. American Century Companies Inc. now owns 378,129 shares of the information technology services provider’s stock worth $5,933,000 after purchasing an additional 317,233 shares in the last quarter. Public Sector Pension Investment Board bought a new stake in Xerox in the third quarter worth $2,194,000. State of Alaska Department of Revenue boosted its holdings in Xerox by 402.9% in the third quarter. State of Alaska Department of Revenue now owns 70,433 shares of the information technology services provider’s stock worth $1,105,000 after purchasing an additional 56,427 shares in the last quarter. Finally, Principal Financial Group Inc. boosted its holdings in Xerox by 43.6% in the third quarter. Principal Financial Group Inc. now owns 659,221 shares of the information technology services provider’s stock worth $10,343,000 after purchasing an additional 200,124 shares in the last quarter. 85.36% of the stock is currently owned by institutional investors.

Xerox Price Performance

The company has a debt-to-equity ratio of 1.06, a current ratio of 1.14 and a quick ratio of 0.91. The stock’s fifty day moving average is $17.42 and its 200-day moving average is $16.30. The stock has a market capitalization of $1.79 billion, a P/E ratio of -71.90 and a beta of 1.56.

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.