Computer Sciences Corp Earnings Cheat Sheet: Swing to a Loss After Two Straight Profit Quarters

On top of dropping to a loss in the second quarter, S&P 500 (NYSE:SPY) component Computer Sciences Corporation (NYSE:CSC) also came in short of analyst estimates. Computer Sciences Corporation offers information technology and professional services to commercial and government markets, specializing in the application of complex IT problems.

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Computer Earnings Cheat Sheet for the Second Quarter

Results: Reported a loss of $2.88 billion ($18.56 per diluted share) in the quarter. The information technology services company had net income of $184 million or $1.18 per share in the year earlier quarter.

Revenue: Rose 1% to $3.97 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CSC reported adjusted earnings per share of 94 cents, beating the mean analyst estimate of 67 cents per share. It beat the average revenue estimate of $4.03 billion.

Quoting Management: “The first half total bookings of $8.9 billion is encouraging and reflects the investment we have made in our sales organization,” said Michael W. Laphen, CSC Chairman, President and Chief Executive Officer. “I am encouraged with the direction of our commercial revenue in the quarter and although the NPS business continues to be impacted by the Federal budget uncertainty, I am comfortable with our relative position in this market. With respect to the bottom line, MSS is a turnaround story and as previously announced we have made several organization and process changes aimed at accelerating improvements.”

Key Stats:

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $183 million in the first quarter, a profit of $171 million in the fourth quarter of the last fiscal year and $242 million in the third of the last fiscal year.

The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 2.3% to $4.03 billion from the year earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is $1.17 per share, down from $1.36 ninety days ago. At $4.38 per share, the average estimate for the fiscal year has fallen from $4.65 ninety days ago.

Competitors to Watch: Intl. Business Machines Corp. (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ), SAVVIS, Inc. (NASDAQ:SVVS), Cognizant Tech. Solutions Corp. (NASDAQ:CTSH), TeleTech Holdings, Inc. (NASDAQ:TTEC), WidePoint Corporation (AMEX:WYY), Syntel, Inc. (NASDAQ:SYNT), Rackspace Hosting, Inc. (NYSE:RAX), Unisys Corporation (NYSE:UIS), and Zanett, Inc. (NASDAQ:ZANE).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)