S&P 500 component Computer Sciences Corporation dropped to a third quarter loss, but results topped expectations. 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 Third Quarter
Results: Reported a loss of $1.39 billion ($8.96 per diluted share) in the quarter. The information technology services company had net income of $242 million or $1.54 per share in the year earlier quarter.
Revenue: Fell 5.8% to $3.76 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: Computer Sciences Corporation reported adjusted net income of $1.35 per share. By that measure, the company beat the mean estimate of 57 cents per share. It fell short of the average revenue estimate of $3.98 billion.
Quoting Management: “I am encouraged by our continued success in capturing new business, our strong cash generation, and the sequential improvement in MSS operating margin,” said Michael W. Laphen, CSC Chairman, President and Chief Executive Officer. “Notwithstanding the NHS charge, discussions continue toward defining a program scope and a market potential that builds upon our accomplishments to date.”
The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 94 cents versus a mean estimate of net income of 68 cents per share.
Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1.43 per share to $1.14, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $3.68 per share, down from $4.34 ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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