Latest news with #Lexmark
Yahoo
24-05-2025
- Business
- Yahoo
Why Xerox Plunged on Friday
Xerox announced a reduction in its dividend today. It's the second dividend cut since December 2024. The reason cited was "increased flexibility" ahead of Xerox's upcoming acquisition of Lexmark. 10 stocks we like better than Xerox › Shares of printer and services giant Xerox (NASDAQ: XRX) plunged 13.7% on Friday as of 1:30 p.m. ET, after the company announced a reduction in its dividend -- the second cut in the span of six months. The dividend cut isn't a great sign of confidence, but a positive, if there is one, is that the cut was made ahead of the closing of a large acquisition. So, it's probably prudent for Xerox to devote more cash to paying down acquisition debt, given current global economic uncertainty. Back in December 2024, Xerox announced the $1.5 billion acquisition of Lexmark International, an existing Xerox partner that provides innovative imaging solutions. Since Xerox is increasing its existing $3.3 billion debt load -- though just $1.7 billion outside of the debt that finances its equipment leases -- Xerox decided to cut its dividend, from $1 per share annually to $0.50. But today, Xerox informed shareholders it would be cutting the dividend again, to $0.10 annually, another 80% cut. The reasons, according to the company, were that the closing of the Lexmark acquisition will be happening sooner than expected, as well as the increased global uncertainty created by the Trump administration's tariff policy. Usually, a dividend cut is a very negative sign. While today's cut isn't exactly a positive, it's probably the right thing to do for Xerox. In addition, if Xerox successfully integrates Lexmark and begins de-levering successfully, the stock could have lots of upsides from here. According to Xerox's 2025 guidance given on May 1, the company projects low-single-digit revenue growth and a 5% adjusted operating margin this year. That would lead to roughly $315 million in operating income, which would amount to $90 million in pre-tax income, assuming the same $225 million in interest expenses the company had last year. Xerox's market cap has fallen to just $555 million today, reflecting a just a 6 to 7 times multiple on that guidance. Keep in mind that these numbers don't reflect the Lexmark acquisition, which will increase the debt but also contribute nearly $300 million in additional adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). So, if Xerox can successfully integrate Lexmark and begin paying down debt, today's sell-off could be an opportunity. However, the company's low growth prospects and debt load also make it somewhat risky. Still, investors who like these type of deep-value situations should put Xerox on their watch lists, and follow how successfully the company integrates Lexmark. Before you buy stock in Xerox, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Xerox wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $640,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $814,127!* Now, it's worth noting Stock Advisor's total average return is 963% — a market-crushing outperformance compared to 168% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Xerox Plunged on Friday was originally published by The Motley Fool 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.
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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Xerox cuts quarterly dividend to 2.5c per share from 12.5c
Xerox (XRX) 'announced that its Board of Directors approved an update to its dividend policy in anticipation of the closing of the Lexmark transaction, reducing the quarterly dividend to $0.025 per share. Accordingly, Xerox announced the declaration of a quarterly dividend of $0.025 per share on Xerox Holdings Corporation Common Stock. The dividend is payable on July 31, 2025, to shareholders of record on June 30, 2025. In December 2024, Xerox announced a reduction to its dividend in conjunction with the planned acquisition of Lexmark, reflecting the prioritization of debt repayment following acquisition close. Since then, yields on Xerox publicly traded debt have risen, resulting in an increased cost of capital and placing greater value on the reduction of debt. Further, an acceleration in the expected timing of the Lexmark transaction close and ongoing tariff and trade-related volatility have put a premium on flexibility.' Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on XRX: Disclaimer & DisclosureReport an Issue Xerox Reports Q1 2025 Earnings Amid IT Growth Xerox Earnings Call: Growth Amidst Challenges High Yields in Hard Times: Why XRX, ARCC, and ET Deserve Investor Attention Xerox Reports Q1 2025 Earnings with Focus on Non-GAAP Measures Xerox reports Q1 adjusted EPS (6c) vs. 6c last year 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
23-05-2025
- Business
- Yahoo
Why Xerox (XRX) Shares Are Falling Today
Shares of document technology company Xerox (NASDAQ:XRX) fell 15.9% in the afternoon session after the company announced a reduction in its quarterly dividend to $0.025 per share, or $0.10 annually, to improve its balance sheet and ensure sufficient capital is available to finalize its acquisition of Lexmark. Despite the dividend cut, the company offered a positive outlook. It reaffirmed its 2025 financial guidance, signaling confidence in the business. Management also anticipated that the Lexmark acquisition would contribute to adjusted earnings per share and free cash flow, indicating that the deal is expected to strengthen profitability and liquidity. Additionally, the company projected at least $238 million in cost and revenue synergies from the acquisition, achievable within two years. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Xerox? Access our full analysis report here, it's free. Xerox's shares are very volatile and have had 28 moves greater than 5% over the last year. But moves this big are rare even for Xerox and indicate this news significantly impacted the market's perception of the business. Xerox is down 46.5% since the beginning of the year, and at $4.42 per share, it is trading 69.5% below its 52-week high of $14.48 from June 2024. Investors who bought $1,000 worth of Xerox's shares 5 years ago would now be looking at an investment worth $253.30. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
