Xerox Corp. (NYSE: XRX) reported fourth-quarter and full-year 2014 results before markets opened Friday. For the quarter, the business technology firm posted quarterly adjusted diluted earnings per share (EPS) of $0.31 on revenues of $5.03 billion. In the same period a year ago, the company reported EPS of $0.27 on revenues of $5.21 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.29 and $5.07 billion in revenues.

For the full year, Xerox reported EPS of $1.07 on revenues of $19.54 billion, compared with EPS of $1.04 and revenues of $20 billion in 2013. Analysts had consensus estimates for EPS of $1.06 on revenues of $20.12.

On a GAAP basis, Xerox reported EPS of $0.26, which includes a $0.05 per share charge for amortization of intangible assets. As a result of the December sale of its information technology outsourcing business, Xerox reported results of the business as a discontinued operation beginning in the fourth quarter.

For the first quarter of 2015, Xerox guided adjusted EPS in a range of $0.20 to $0.22, compared with a consensus estimate of $0.25. For the full year, the company forecast EPS of $1.00 to $1.06, compared with the consensus estimate of $1.09.

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The company’s CEO said:

We delivered strong profit and cash in the fourth quarter. Services revenue growth improved and margin expanded both sequentially and year-over-year. This is an indication that our plan is delivering positive results. Total contract signings increased 20 percent, driven by renewals. We continue to lead in Document Technology, where we are executing well and where we expanded profit year-over-year. We’re encouraged by these results, which demonstrate our ability to win in segments where Xerox is uniquely differentiated like healthcare, graphic communications and transportation.

The light guidance combined with lower-than-expected revenues will cost Xerox in Friday’s trading. At its investor day presentation in November, the company said it expected adjusted 2015 EPS of $1.11 to $1.17. That is now out the window. The company’s turnaround plan has stalled, and about the only way Xerox can get investors pumped again is to cut costs. And we all know what that means.

Xerox shares traded down about 2.4% in Friday’s premarket trading to $13.25, having closed at $13.56 Thursday in a 52-week range of $10.26 to $14.36. Thomson Reuters had a consensus analyst price target of around $14.00 before this report.

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