NORWALK, Conn. - Xerox Holdings Corporation (NASDAQ: XRX), a leader in print technology and services, announced the upcoming retirement of its Chief Financial Officer, Xavier Heiss, and the appointment of Mirlanda Gecaj as his successor. Heiss, who has been with Xerox for over three decades and served as CFO since 2021, will retire on February 1, 2025.
Steve Bandrowczak, CEO of Xerox, praised Heiss for his significant contributions to the company's transformation and growth. "Xavier has been a driving force behind many of the transformative initiatives that have reshaped our company," Bandrowczak stated.
Gecaj, currently the vice president and chief accounting officer, will assume the CFO role on February 1, 2025. She joined Xerox in 2022 and has since been instrumental in enhancing the company's financial operations and reporting, leveraging her extensive experience in accounting and finance. Her background includes roles at PricewaterhouseCoopers and Element Solutions (NYSE:ESI) Inc., where she led business transformation strategies.
Bandrowczak expressed confidence in Gecaj's ability to guide Xerox's financial future, highlighting her involvement in the company's ongoing reinvention and strategic repositioning. Gecaj herself is committed to driving the company's financial goals while maintaining its core values.
During her tenure at Xerox, Gecaj has been mentored by Heiss and has contributed to financial process standardization and automation, which has resulted in significant cost savings and improved outcomes.
"I am honored to step into the role of CFO at such a pivotal time for Xerox," said Gecaj. "I look forward to continuing this work in my new role, ensuring that we enable sustainable growth in profit and free cash flow."
Xerox has been at the forefront of workplace technology for over a century, continually innovating to meet the needs of the hybrid workplace. The company's commitment to diversity and inclusion remains a core aspect of its operations.
This leadership transition is part of the company's succession planning, ensuring a seamless change in financial leadership as Xerox continues to evolve. The information regarding this transition is based on a press release statement from Xerox Holdings Corporation.
In other recent news, Xerox Corporation (NASDAQ:XRX)'s second-quarter earnings report showed a decline in earnings per share (EPS) and revenues, with the latter matching forecasts. The company's revenue for both the first and second quarters of 2024 recorded $1.5 billion and $1.6 billion respectively. This downturn is attributed to significant structural changes, including a 15% reduction in workforce. Despite these challenges, Xerox remains committed to its reinvention strategy, aiming to improve its adjusted operating income by $300 million above 2023 levels within three years.
In financial developments, Xerox expanded its credit line from $300 million to $425 million, in partnership with Citibank and other lenders, to bolster its financial flexibility. The company's board of directors declared dividends for both its common and preferred stock.
Loop Capital has adjusted the stock price target for Xerox, reducing it to $11 from the previous $14 while maintaining a Hold rating. Similarly, JPMorgan reduced its price target to $16 from the previous $17, maintaining an Underweight rating on the stock. Citi initiated coverage on Xerox with a Sell rating, setting a price target of $11.00. These adjustments reflect concerns over Xerox's ability to achieve long-term revenue and earnings growth amidst ongoing major restructuring efforts.
InvestingPro Insights
As Xerox Holdings Corporation (NASDAQ: XRX) prepares for a change in financial leadership with the upcoming retirement of CFO Xavier Heiss and the appointment of Mirlanda Gecaj, the company's financial health and stock performance are of keen interest to investors. According to InvestingPro, Xerox's net income is expected to grow this year, which could signal a positive outlook for Gecaj's tenure as CFO. This anticipated growth is in line with the company's strategic initiatives to enhance profitability.
InvestingPro data shows that Xerox has a market capitalization of $1.32 billion and is currently trading at a low Price / Book multiple of 0.56, suggesting that the stock may be undervalued relative to its book value. This could present an opportunity for investors seeking assets that may be trading below their intrinsic value. Additionally, Xerox offers a substantial dividend yield of 9.59%, a testament to its commitment to returning value to shareholders, and has maintained dividend payments for 18 consecutive years.
InvestingPro Tips also highlight that Xerox is a prominent player in the Technology Hardware, Storage & Peripherals industry, which could benefit from Gecaj's experience in business transformation strategies. However, it's worth noting that four analysts have revised their earnings estimates downwards for the upcoming period, and the stock has experienced significant volatility, with a six-month price total return of -34.31%.
For investors interested in a deeper analysis of Xerox's financial metrics and stock performance, InvestingPro offers additional tips, providing a comprehensive toolkit for making informed investment decisions. There are currently 11 more tips available for Xerox on InvestingPro.
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