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.