Zacks Research Issues Pessimistic Outlook for Xerox Earnings

Xerox Holdings Co. (NYSE:XRX) – Equities researchers at Zacks Research dropped their Q1 2025 earnings per share estimates for shares of Xerox in a research report issued to clients and investors on Tuesday, February 18th. Zacks Research analyst R. Department now anticipates that the information technology services provider will post earnings per share of $0.08 for the quarter, down from their previous estimate of $0.17. The consensus estimate for Xerox’s current full-year earnings is $1.18 per share. Zacks Research also issued estimates for Xerox’s FY2025 earnings at $1.10 EPS, Q2 2026 earnings at $0.17 EPS, Q3 2026 earnings at $0.26 EPS, Q4 2026 earnings at $0.48 EPS and FY2026 earnings at $1.31 EPS.

Several other brokerages have also issued reports on XRX. StockNews.com lowered shares of Xerox from a “buy” rating to a “hold” rating in a research note on Wednesday, February 5th. Morgan Stanley reduced their price objective on shares of Xerox from $10.00 to $8.00 and set an “underweight” rating on the stock in a research note on Wednesday, October 30th. Finally, JPMorgan Chase & Co. cut their price target on Xerox from $11.00 to $8.00 and set an “underweight” rating on the stock in a research note on Wednesday, October 30th. Three equities research analysts have rated the stock with a sell rating and two have given a hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $9.50.

Xerox Price Performance

Xerox stock opened at $7.89 on Friday. The stock has a market cap of $981.28 million, a price-to-earnings ratio of -0.73 and a beta of 1.59. Xerox has a 12-month low of $7.70 and a 12-month high of $19.48. The company has a quick ratio of 0.84, a current ratio of 1.11 and a debt-to-equity ratio of 2.61. The business’s 50-day simple moving average is $8.68 and its 200 day simple moving average is $9.39.

Institutional Investors Weigh In On Xerox

A number of hedge funds have recently modified their holdings of XRX. Gladius Capital Management LP bought a new stake in Xerox in the 3rd quarter valued at $29,000. Picton Mahoney Asset Management lifted its stake in Xerox by 330.5% in the 4th quarter. Picton Mahoney Asset Management now owns 3,758 shares of the information technology services provider’s stock valued at $31,000 after acquiring an additional 2,885 shares in the last quarter. TD Waterhouse Canada Inc. acquired a new position in Xerox during the 4th quarter worth approximately $51,000. US Bancorp DE grew its stake in shares of Xerox by 42.3% during the 3rd quarter. US Bancorp DE now owns 6,353 shares of the information technology services provider’s stock worth $66,000 after acquiring an additional 1,888 shares in the last quarter. Finally, KBC Group NV raised its holdings in shares of Xerox by 84.5% in the fourth quarter. KBC Group NV now owns 9,223 shares of the information technology services provider’s stock valued at $78,000 after purchasing an additional 4,224 shares during the last quarter. Institutional investors and hedge funds own 85.36% of the company’s stock.

Xerox Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 30th. Stockholders of record on Monday, March 31st will be given a dividend of $0.125 per share. The ex-dividend date of this dividend is Monday, March 31st. This represents a $0.50 dividend on an annualized basis and a dividend yield of 6.34%. Xerox’s dividend payout ratio is -9.31%.

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.