Latest news with #XRX
Yahoo
17 hours ago
- Business
- Yahoo
Xerox's 2025 Margin Cut Undermines Transformation Hopes
Xerox Holdings Corp. (NASDAQ:XRX) shares tumbled sharply on Thursday after the company reported a wider-than-expected loss for the fiscal second quarter of 2025 and significantly lowered its full-year guidance, raising concerns about the pace and impact of its ongoing strategic overhaul. The document management and technology services provider posted a modest 0.1% year-over-year decline in revenue to $1.58 billion, slightly ahead of the consensus estimate of $1.55 billion. On a constant currency basis, revenue fell 1.1%. However, the company's bottom line deeply missed Wall Street expectations, with an adjusted loss per share of 64 cents compared to analysts' forecast of an 8-cent loss, triggering a steep sell-off in the weakness was pronounced in the company's equipment segment, where sales declined 5.6%. By contrast, post-sale revenue, which includes services, consumables, and financing, edged up 1.5%. Gross margin contracted by 440 basis points to 28.6%. Equipment gross margin dropped dramatically by 1,050 basis points to 24.0%, while post-sale margin decreased by 260 basis points to 29.9%. Adjusted operating income fell to $59 million from $85 million a year ago, with the operating margin narrowing by 170 basis points to 3.7%. Xerox ended the quarter with $449 million in cash and equivalents, but used $11 million in operating cash flow, a reversal from prior quarters that had seen positive free cash generation. View more earnings on XRX Chief Executive Officer Steve Bandrowczak attributed the company's resilience in a volatile market to the early benefits of its Reinvention strategy, a multi-year transformation plan aimed at repositioning Xerox as a vertically integrated provider of workflow and technology solutions. A cornerstone of this plan is the acquisition of Lexmark, which Bandrowczak described as 'an important milestone' in expanding Xerox's IT and digital services capabilities. 'Our second quarter reflects the improved resiliency of financial results afforded by Reinvention,' Bandrowczak said in a statement. 'Growth in IT and Digital Solutions helped deliver stable revenue, and a focus on costs preserved profitability amid a volatile operating landscape.' Outlook Looking ahead, however, the company struck a more cautious tone. Xerox lowered its full-year free cash flow guidance to $250 million, down sharply from the prior range of $350 million to $400 million. It also cut its expected adjusted operating margin to 4.5%, below the previous forecast of at least 5.0%. The company now anticipates constant currency revenue growth of 16% to 17%, significantly above the earlier low single-digit outlook, largely reflecting the addition of Lexmark to its portfolio. Despite management's confidence in its long-term transformation, investors have yet to be convinced. Xerox shares have plummeted 51% year-to-date and have now missed consensus earnings estimates for four consecutive quarters. Revenue has fallen short in two of the last four. The company said that the revised guidance includes Lexmark's financial results beginning July 1 and reflects $30 to 35 million of expected tariff-related expenses, net of mitigation efforts, modest Lexmark-related synergies and a slightly more conservative Print equipment demand outlook amid ongoing tariff and government policy-related uncertainty. Price Action: At last check Thursday, Xerox stock was trading down 21.7% at $4.09, reflecting deepening investor concern over both near-term execution risks and the viability of the company's reinvention efforts. Photo via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? XEROX HOLDINGS (XRX): Free Stock Analysis Report This article Xerox's 2025 Margin Cut Undermines Transformation Hopes originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Xerox Holdings Corporation (XRX) Announces Updates to Xerox PrimeLink B9100 Production Press Series and Xerox FreeFlow Workflow Software
Xerox Holdings Corporation (NASDAQ:XRX), having a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, ranks among the . A computer engineer seated in front of several connected consoles, illustrating the depth of cloud services offered by the company. Xerox Holdings Corporation (NASDAQ:XRX) announced critical updates to its Xerox PrimeLink B9100 Production Press Series and Xerox FreeFlow Workflow Software on July 16, 2025. According to the updates to the PrimeLink B9100 Production Press Series, efficiency is boosted and secure transactional printing is enabled with the new dual oversized high-capacity feeders and Fiery server. Furthermore, an optional Job Vitals Light feature is added, providing instant job status visibility across the production floor. Meanwhile, for FreeFlow Workflow Software, the PowerSplit Accelerator is included in FreeFlow Core, enabling faster processing of complex jobs, while Vision Connect now delivers enhanced data reporting, predictive monitoring, and interactive insights. With the help of its Xerox Workplace Cloud and FreeFlow platforms, Xerox Holdings Corporation (NASDAQ:XRX) utilizes cloud technology, offering secure print management, authentication, and mobility workflows. It is included in our list of the best cloud stocks. While we acknowledge the potential of XRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 14 Cheap Transportation Stocks to Buy According to Analysts and 11 Best Mineral Stocks to Buy According to Hedge Funds. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Xerox Holdings Corporation (XRX) Announces Updates to Xerox PrimeLink B9100 Production Press Series and Xerox FreeFlow Workflow Software
Xerox Holdings Corporation (NASDAQ:XRX), having a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, ranks among the . A computer engineer seated in front of several connected consoles, illustrating the depth of cloud services offered by the company. Xerox Holdings Corporation (NASDAQ:XRX) announced critical updates to its Xerox PrimeLink B9100 Production Press Series and Xerox FreeFlow Workflow Software on July 16, 2025. According to the updates to the PrimeLink B9100 Production Press Series, efficiency is boosted and secure transactional printing is enabled with the new dual oversized high-capacity feeders and Fiery server. Furthermore, an optional Job Vitals Light feature is added, providing instant job status visibility across the production floor. Meanwhile, for FreeFlow Workflow Software, the PowerSplit Accelerator is included in FreeFlow Core, enabling faster processing of complex jobs, while Vision Connect now delivers enhanced data reporting, predictive monitoring, and interactive insights. With the help of its Xerox Workplace Cloud and FreeFlow platforms, Xerox Holdings Corporation (NASDAQ:XRX) utilizes cloud technology, offering secure print management, authentication, and mobility workflows. It is included in our list of the best cloud stocks. While we acknowledge the potential of XRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 14 Cheap Transportation Stocks to Buy According to Analysts and 11 Best Mineral Stocks to Buy According to Hedge Funds. Disclosure: None.
Yahoo
02-06-2025
- Business
- Yahoo
Boom Bust: Assets Flee CALF as Performance Slumps
The Pacer US Small Cap Cash Cows ETF (CALF) has fallen sharply out of favor in 2025, as a dramatic reversal in performance has triggered a flood of outflows from the once-high-flying fund. Year to date, investors have yanked $2.6 billion from the ETF, the 12th-largest outflow among all U.S.-listed exchange-traded funds. That exodus, combined with deep losses, has slashed the fund's assets by nearly half—from $8.1 billion at the start of the year to $4.3 billion today. At its peak in 2024, CALF had just under $10 billion in assets. The sharp reversal underscores how quickly investor sentiment can shift. CALF's recent struggles have been particularly stark given its meteoric rise in prior years. From just $1 billion in assets in October 2022, the fund ballooned to nearly $10 billion in April 2024 thanks to blistering 2023 performance. That year, the ETF surged 35%, roughly double the returns of the biggest small-cap ETFs, including the iShares Russell 2000 ETF (IWM), the Vanguard Small-Cap ETF (VB) and the iShares Core S&P Small-Cap ETF (IJR). But the magic didn't last. In 2024, CALF dropped 7.4% even as its small-cap peers gained between 8% and 15%. And in 2025, the performance gap has only widened. As of now, the fund is down 12.5% on the year, compared to a 6.9% decline for IWM, a 4.7% drop for VB and an 8.2% loss for IJR. CALF's underperformance reflects both its concentrated nature and its unique strategy. While IWM, VB and IJR track broad, market cap-weighted indexes with hundreds or even thousands of holdings—none of which typically make up more than 0.5% of the portfolio—CALF is much more selective. The ETF chooses 200 companies with the highest free cash flow yields (free cash flow divided by enterprise value) from the small-cap universe. It's a value-leaning approach but one distinct from traditional value screens, such as those that emphasize price-to-book or price-to-earnings ratios. As a result, CALF's portfolio is relatively concentrated, with the top 10 holdings making up around 20% of assets and the top 20 more than 35%. Individual stocks can carry weights of 2% or more. That's not unusually high for ETFs overall, but it's elevated compared to other broad small-cap funds. Unfortunately for CALF, many of its top holdings have fared poorly in the past year and a half. Just five companies—Xerox Holdings Corp. (XRX), Alpha Metallurgical Resources Inc. (AMR), Peabody Energy Corp. (BTU), Signet Jewelers Limited (SIG) and Ironwood Pharmaceuticals Inc. (IRWD)—have collectively wiped nearly six percentage points off the fund's returns since the start of 2024. That kind of drag is difficult to overcome, and it's especially painful for a strategy that pitches itself as a more disciplined, cash-flows-focused alternative to traditional small-cap investing. To be clear, this year's weakness doesn't appear to be a referendum on value investing itself. Over the past 17 months, the Vanguard Small-Cap Value ETF (VBR) is up 8% while CALF has fallen 19%. VBR tracks the CRSP US Small Cap Value Index, which uses a multi-factor model that selects stocks based on price-to-book, various price-to-earnings ratios, dividend yields and price-to-sales ratios. CALF's struggles highlight the risks of a relatively concentrated portfolio of small-cap stocks. When it works, it can outperform in a big way. But when it doesn't, investors may quickly head for the | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Xerox Holdings Corporation (XRX) Cuts Dividend Again, Now Down to $0.025
Xerox Holdings Corporation (NASDAQ:XRX) announced that its Board of Directors has updated its dividend policy ahead of completing the Lexmark acquisition, lowering the quarterly dividend to $0.025 per share, which amounts to $0.10 annually. Based in Connecticut, Xerox Holdings Corporation (NASDAQ:XRX) specializes in creating and manufacturing print and digital document products, along with providing related services. In December 2024, Xerox Holdings Corporation (NASDAQ:XRX) had already announced a dividend cut tied to the Lexmark deal, focusing on paying down debt once the acquisition is finalized. Since then, rising yields on Xerox's publicly traded debt have increased its borrowing costs, making debt reduction even more important. In addition, the anticipated earlier closing of the Lexmark acquisition and ongoing tariff and trade uncertainties have made maintaining financial flexibility a top priority. Mirlanda Gecaj, chief financial officer, made the following comment about the recent development: 'Consistent with our previously stated capital allocation priorities to reduce leverage post-closing, we believe reducing our dividend creates greater financial flexibility to deploy cash in the most accretive manner. The dividend remains an important component of our capital allocation policy as we continue to optimize our allocation framework ahead of the Lexmark acquisition close.' XRX has a dividend yield of 11.12%, as of May 23, and the stock has declined by over 45% since the start of 2025. While we acknowledge the potential of XRX as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than XRX but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ MORE: and Disclosure. None.
