Computer Sciences Earnings: Swing to a Loss, Short of Analysts’ Forecasts

On top of dropping to a loss in the fourth 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 Fourth Quarter

Results: Reported a loss of $158 million ($1.02 per diluted share) in the quarter. Computer Sciences Corporation had a net income of $171 million or $1.09 per share in the year-earlier quarter.

Revenue: Fell 2.1% to $4.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Computer Sciences Corporation fell short of the mean analyst estimate of 20 cents per share. Analysts were expecting revenue of $4.1 billion.

Quoting Management: “We consider these results to be very poor as the Company is executing well below an acceptable level for CSC and its investors. There are many reasons for our under-performance – primarily NHS write-offs and challenges managing our cost structure, aligning our global organization, and in executing some of our MSS contracts. We are also experiencing some market headwinds in the Federal business and in Europe. There were some positives in the quarter – namely our new business awards of $6.3 billion which showed particular strength in MSS and in North America.”

Key Stats:

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the third quarter, it topped the mark by 78 cents, and in the second quarter, it was ahead by 26 cents.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 47 cents per share, down from 63 cents ninety days ago. The average estimate for the fiscal year is now $3.58 per share, down from $4.27 sixty days ago.

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

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