Computer Sciences Earnings: Here’s Why the Stock is Rising Now
Computer Sciences Corporation (NYSE:CSC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 5.6%.
Computer Sciences Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 468.75% to $0.91 in the quarter versus EPS of $0.16 in the year-earlier quarter.
Revenue: Decreased 17.61% to $3.26 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Computer Sciences Corporation reported adjusted EPS income of $0.91 per share. By that measure, the company beat the mean analyst estimate of $0.67. It missed the average revenue estimate of $3.57 billion.
Quoting Management: “We are encouraged with the pace of our turnaround. Our cost takeout actions are driving margin expansion and earnings growth,” said Mike Lawrie, president and CEO. “The company is beginning to pivot more towards growth and we are investing in offerings and partnerships that will enhance our differentiation and expand our market coverage. Based on our current progress, we are raising our target for EPS from continuing operations by 20 cents to $3.50 – $3.70.”
Key Stats (on next page)…
Revenue decreased 8.4% from $3.56 billion in the previous quarter. EPS increased 65.45% from $0.55 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.85 to a profit $0.83. For the current year, the average estimate has moved up from a profit of $3.45 to a profit of $3.52 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)