Xerox Corp. (NYSE: XRX) reported second-quarter 2015 results before markets opened Friday. The business technology firm posted quarterly adjusted diluted earnings per share (EPS) of $0.22 on revenues of $4.59 billion. In the same period a year ago, the company reported EPS of $0.25 on revenues of $4.94 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.22 and $4.64 billion in revenues.

On a GAAP basis, EPS totaled $0.09, including restructuring and asset impairment charges of $157 million, or about $0.15 per share. Xerox expects a per-share restructuring charge of about $0.01 in the third quarter.

In the second quarter of 2015, Xerox said revenue in its Services business fell 3% to $2.57 billion (up 1% in constant currency), but margin fell 1% to 7.5%, primarily due to the anticipated run-off of the company’s student loan business and its Texas Medicaid contract, which combined for a negative impact of 2.4% on the Services segment’s quarterly revenues.

Revenue in the Document Technology business came in at $1.88 billion, down 12% (down 7% in constant currency). Margin fell 2.3% to 12.1% due to unfavorable revenue mix, price declines and an anticipated increase in pension expense, partially offset by the retiree health curtailment gain and restructuring and productivity benefits.

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The company’s CEO said:

We delivered adjusted earnings in line with our guidance, met our Services and Document Technology margin expectations and delivered solid operating cash flow of $349 million in the quarter. We are intensely focused on improving our Services margin and are implementing restructuring actions and prioritizing investments to accelerate benefits from our new operating model.

Xerox lowered its full-year revenue guidance from a prior estimate of flat to a new estimate of down approximately 1% in constant dollars. Foreign exchange effects will cost the company 4%, the top end of the prior range. Services margins are now forecast in a range of 8.5% to 9%, down from the prior guidance of 9% to 10%. Full-year adjusted EPS is now expected to total between $0.95 and $1.01, down from a prior range of $1.00 to $1.06.

For the third quarter, Xerox expects GAAP earnings of $0.17 to $0.19 per share and adjusted EPS of $0.22 to $0.24 per share. The consensus estimates call for adjusted EPS of $0.25 on revenues of $4.58 billion.

For the full year, Xerox guided GAAP earnings per share of $0.69 to $0.75 and adjusted EPS at $0.95 to $1.01. Consensus estimates call for EPS of $0.98 and revenues of $18.56 billion.

Xerox is adjusting its capital allocation plans as well, increasing share buybacks by $300 million and reducing acquisitions.

Xerox shares traded down about 0.7% in Friday’s premarket, at $10.73 in a 52-week range of $10.24 to $14.36. Thomson Reuters had a consensus analyst price target of around $13.50 before the report.

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