By market open, shares had taken off 3.9% to $11.02.
In a statement, the company said due to "increased implementation costs in government healthcare" it was lowering its second-quarter earnings guidance to between 25 cents and 27 cents a share.
Fiscal 2014 adjusted earnings are expected between $1.07 and $1.13 a share.
Analysts surveyed by Thomson Reuters had anticipated second-quarter earnings of 28 cents a share and full-year earnings of $1.13 a share.
TheStreet Ratings team rates XEROX CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate XEROX CORP (XRX) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
- You can view the full analysis from the report here: XRX Ratings Report
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