Xerox Stock Recovers After Warning

After warning of disappointing fourth-quarter results Friday, Xerox Corp. shares fell in early morning trading Monday but regained ground later in the day.

Shares were down 13 percent in early trading and then rose later, up $2.25 to $22.13, a gain of 11 percent.

The Stamford, Conn., copier giant warned after market close on Friday that fourth-quarter earnings would be about 40 percent below analysts' estimates. First Call estimate was 66 cents a share.

Prior to the news, Xerox shares had slipped 15 percent on Friday.

Following the news, Paine Weber lowered its fourth-quarter estimate to 40 cents from 65 cents and reduced its year 2000 estimate to $1.85 from $2.25. J.P. Morgan Securities Inc. cut the company's rating to long-term buy from buy.

The company cited Y2K concerns and reorganization costs in issuing the revised estimates.

Xerox shares have ranged from a 52-week low of $19 to a 52-week high of $63.94.