Xerox (NYSE:XRX) Posts Earnings Results, Misses Estimates By $0.71 EPS

Key Points

• Xerox reported an earnings per share (EPS) of ($0.64) for the quarter, missing the consensus estimate by ($0.71), and showed a negative net margin of 21.24%.
• The company's revenue fell by 0.1% year-over-year, and they updated their FY 2025 guidance.
• Xerox announced a quarterly dividend payout of $0.025 per share, which translates to an annualized yield of 2.5%.

Xerox (NYSE:XRX - Get Free Report) announced its quarterly earnings results on Thursday. The information technology services provider reported ($0.64) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.07 by ($0.71), Briefing.com reports. Xerox had a positive return on equity of 7.57% and a negative net margin of 21.24%. The company's revenue was down .1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.29 EPS. Xerox updated its FY 2025 guidance to EPS.

Xerox Stock Performance

NYSE XRX traded up $0.19 on Monday, hitting $4.13. 1,439,324 shares of the company's stock were exchanged, compared to its average volume of 4,060,242. The company has a debt-to-equity ratio of 2.61, a current ratio of 1.11 and a quick ratio of 0.84. The firm's 50-day moving average price is $5.27 and its two-hundred day moving average price is $5.82. Xerox has a fifty-two week low of $3.44 and a fifty-two week high of $11.42. The firm has a market cap of $519.26 million, a price-to-earnings ratio of -0.38 and a beta of 1.82.

Xerox Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Monday, June 30th were given a dividend of $0.025 per share. The ex-dividend date was Monday, June 30th. This represents a $0.10 annualized dividend and a yield of 2.4%. Xerox's payout ratio is presently -0.87%.

Insider Transactions at Xerox

In related news, CEO Steven John Bandrowczak bought 22,300 shares of Xerox stock in a transaction that occurred on Friday, May 23rd. The shares were purchased at an average price of $4.48 per share, with a total value of $99,904.00. Following the purchase, the chief executive officer owned 382,442 shares in the company, valued at $1,713,340.16. This represents a 6.19% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director A. Scott Letier purchased 25,000 shares of Xerox stock in a transaction on Friday, May 23rd. The shares were acquired at an average cost of $4.43 per share, for a total transaction of $110,750.00. Following the purchase, the director owned 29,384 shares in the company, valued at approximately $130,171.12. This trade represents a 570.26% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders acquired 82,300 shares of company stock worth $364,254 over the last quarter. Insiders own 1.50% of the company's stock.

Hedge Funds Weigh In On Xerox

A number of hedge funds have recently bought and sold shares of the company. Goldman Sachs Group Inc. lifted its holdings in Xerox by 37.7% in the first quarter. Goldman Sachs Group Inc. now owns 1,575,229 shares of the information technology services provider's stock worth $7,608,000 after acquiring an additional 431,349 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of Xerox by 71.7% during the first quarter. AQR Capital Management LLC now owns 345,631 shares of the information technology services provider's stock valued at $1,661,000 after buying an additional 144,280 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Xerox by 9.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 600,018 shares of the information technology services provider's stock valued at $2,898,000 after buying an additional 50,467 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of Xerox by 2.1% during the first quarter. Empowered Funds LLC now owns 619,381 shares of the information technology services provider's stock valued at $2,992,000 after buying an additional 12,633 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Xerox by 4.3% during the first 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. 85.36% of the stock is currently owned by institutional investors and hedge funds.

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.