Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
In a challenging year for Xerox Corp (NASDAQ:XRX), the company’s stock has tumbled to a 52-week low, touching down at $5.11. This latest price level reflects a stark contrast to the firm’s performance over the past year, with Xerox witnessing a precipitous 1-year change, plummeting by -71.34%. InvestingPro analysis indicates the stock is currently undervalued, with analyst price targets ranging from $7 to $14.91. Despite market challenges, the company maintains a significant 9.21% dividend yield and generates annual revenue of $6.22B. The iconic brand, once synonymous with photocopying, has faced intense market pressures and a rapidly evolving industry landscape, leading to significant investor concern and a reevaluation of the company’s long-term prospects. As Xerox grapples with these headwinds, stakeholders are closely monitoring its strategic moves to revitalize growth and stabilize its market position. InvestingPro subscribers have access to 13 additional exclusive tips and comprehensive analysis through the Pro Research Report, offering deeper insights into Xerox’s financial health and future prospects.
In other recent news, Xerox Holdings Corporation reported its fourth-quarter 2024 earnings, which fell short of analyst expectations. The company announced earnings per share of $0.36, missing the forecasted $0.67, and revenue of $1.61 billion, below the anticipated $1.69 billion. In light of these results, Moody’s confirmed Xerox’s B2 corporate family rating and assigned a Ba2 rating to the company’s newly upsized senior secured debt facility. This development follows Xerox’s acquisition of Lexmark, which is expected to enhance its market position and improve its debt to EBITDA ratio.
The acquisition is projected to be credit positive, as it will increase Xerox’s scale and diversify its print portfolio. Moody’s anticipates that the Lexmark acquisition will lead to improved leverage and cash flow for Xerox, despite ongoing revenue challenges. Additionally, Xerox declared quarterly dividends for both common and preferred stock, with $0.125 per share for common stock and $20.00 per share for preferred stock. These dividends reflect Xerox’s commitment to delivering value to shareholders.
Looking forward, Xerox aims for low single-digit revenue growth in 2025, focusing on IT solutions and digital services. The company plans to realize significant cost synergies from the Lexmark acquisition, which is set to close in the second half of 2025. Despite the earnings miss, Xerox continues to focus on strategic acquisitions and operational improvements to drive future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.