Xerox guided down 4Q EPS from continuing operations estimates to $0.28-$0.30 per share
which was below the $0.33 analysts' were expecting (they did manage to slightly beat expectations for the 3Q, however). Basically, the entire
discrepancy is a charge of $0.04 for restructuring its outsourcing business.
They kicked off this restructuring plan for their services business last November.
It is little surprising to see XRX getting whacked as hard as it is today but it may be due to
the fact that it has been on a good run and has outperformed by 5% and 28% over
the past 3 and 12 months, respectively. The point and figure chart still looks
ok.
