Xerox Issues Profit Warning

Xerox (XRX) became the latest big-name company to warn of an earnings shortfall. The company said that its sales for January and February were 18% below last year’s level.

Earlier, Xerox had said to expect first-quarter earning between 16 and 20 cents per share. Now the company said that earnings will range between three and five cents per share. That’s a major revision.

The stock has fallen below $5 a share in today’s trading. I first spotted troubles at Xerox in November 2007 when I listed it as one of ten tech stocks to sell. At the time, Xerox was going for $16 a share.

As I noted yesterday, not all stocks will be winners in this market so stock-picking is crucial. For now, I recommend investors stay away from shares of Xerox.

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