Zacks Research Lowers Earnings Estimates for Xerox

Xerox Holdings Co. (NYSE:XRX - Free Report) has recently attracted the attention of investment analysts at Zacks Research, who have revised their earnings estimates for the company. In a report shared with clients and investors on February 18th, Zacks Research analyst R. Department has scaled back their expectation for Xerox’s Q1 2025 earnings. They now predict the company will achieve earnings per share (EPS) of $0.08 for the quarter, a decrease from their previous estimate of $0.17.

Furthermore, Zacks Research has provided forecasts for Xerox’s earnings for the full year 2025, expecting a total EPS of $1.10. The analyst also offered projections for subsequent quarters, estimating $0.17 for Q2 2026, $0.26 for Q3 2026, and $0.48 for Q4 2026, with an anticipated total earnings of $1.31 EPS for FY2026.

In light of these adjustments, it’s important to note that other analysts have also made similar moves regarding their ratings for Xerox. For instance, on October 30th, Morgan Stanley adjusted their price target on Xerox from $10.00 to $8.00, assigning an “underweight” rating on the stock. Similarly, JPMorgan Chase & Co. dropped their price target to $8.00 from $11.00 while maintaining an “underweight” rating.

Additionally, on February 5th, StockNews.com downgraded Xerox from a “buy” rating to a “hold” rating. Currently, several equities research analysts have categorized the stock with a sell rating, while others have issued hold ratings. According to MarketBeat.com, Xerox's average rating currently stands at “Reduce” with an average price target of $9.50.

Xerox Stock Performance

Xerox's stock opened at $7.85, reflecting a decline of 2.2%. In terms of financial health, the company has a current ratio of 1.11 and a quick ratio of 0.84, while its debt-to-equity ratio is quite high at 2.61. Over the last year, shares of Xerox have fluctuated considerably, with a 12-month low reaching $7.77 and a high of $19.48. The firm holds a market capitalization of approximately $976.30 million and a price-to-earnings ratio of 8.36.

Dividend Update

In recent developments, Xerox declared a quarterly dividend of $0.125 per share, which is scheduled to be paid on April 30th to shareholders on record by March 31st. This results in an annualized dividend of $0.50, giving a substantial yield of 6.37%. Interestingly, Xerox’s payout ratio is reported to be negative at -9.31%, indicating that the company might be distributing more in dividends than its earnings.

Institutional Holdings

Recent trading activity shows that institutional investors are actively engaging with Xerox’s stock. For instance, UBS AM increased its stake by 7.1% during the fourth quarter, owning a total of 549,551 shares worth approximately $4,633,000 after acquiring an additional 36,420 shares. Other firms such as Voloridge Investment Management and Wexford Capital have also initiated or expanded their holdings in Xerox, indicating varied institutional interest in the company. As of now, around 85.36% of Xerox's stock is held by institutional investors and hedge funds.

Xerox Company Overview

Xerox Holdings Corporation operates as a workplace technology company that integrates hardware, services, and software aimed at enterprises across various global regions, including the Americas and Europe. It runs primarily through two main segments: Print and Other; and FITTLE.

Conclusion

The recent adjustments in earnings estimates by Zacks Research reflect broader challenges that Xerox may be facing in the current market. While the stock remains under close watch from analysts, it is evident that investor sentiment and target adjustments remain cautious.

Xerox, Earnings, Estimates