S&P 500 (NYSE:SPY) component Computer Sciences (NYSE:CSC) will unveil its latest earnings on Tuesday, November 6, 2012. Computer Sciences Corporation offers information technology and professional services to commercial and government markets, specializing in the application of complex IT problems.
Computer Sciences Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 47 cents per share, a decline of 50% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 40 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 47 cents during the last month. Analysts are projecting profit to rise by 8.5% versus last year to $2.17.
Last quarter, the company came in at net income of 26 cents per share against a mean estimate of profit of 20 cents per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by 34 cents.
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A Look Back: In the first quarter, profit fell 78.1% to $40 million (26 cents a share) from $183 million ($1.17 a share) the year earlier, but exceeded analyst expectations. Revenue fell 1.9% to $3.96 billion from $4.03 billion.
Stock Price Performance: Between August 7, 2012 and October 31, 2012, the stock price rose $4.93 (19.3%), from $25.52 to $30.45. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 13, 2012, when shares rose for eight straight days, increasing 30.1% (+$7.26) over that span. It saw one of its worst periods between July 3, 2012 and July 12, 2012 when shares fell for seven straight days, dropping 8.1% (-$2.03) over that span.
Wall St. Revenue Expectations: Analysts predict a decline of 3.2% in revenue from the year-earlier quarter to $3.88 billion.
Heading into this earnings season, the company is looking to build on positive signs from last quarter. After taking losses in the second quarter of the last fiscal year, the third of the last fiscal year and the fourth quarter of the last fiscal year, the company finished in the black with income of $40 million in the first.
On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 6.1% in the third quarter of the last fiscal year and 0.1% in fourth quarter of the last fiscal year before falling again in the first quarter.
Analyst Ratings: There are mostly holds on the stock with nine of 11 analysts surveyed giving that rating.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.09 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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