CSC advances despite reportedly losing key deal

theflyonthewall.com

CSC's (CSC) stock is rising slightly even though the U.S. government reportedly terminated one of its key contracts. The federal government's General Services Administration, or GSA, terminated a $475M infrastructure support contract that CSC had obtained with the FDIC, according to privately held SRA International, CSC's competitor. SRA had protested the award of the contract to GSA, which upheld SRA's protest, the company reported in an SEC filing late on Friday. The government will solicit new technical proposals for the project and will award a new contract, SRA reported. In a note to investors earlier today, Wells Fargo analyst Edward Caso, Jr. said that CSC was supposed to obtain a significant amount of revenue from the deal during the current quarter. The GSA's decision is an "unusual disappointment" for CSC, which had recently had a string of good news, the analyst said. CACI International (CACI) and Lockheed Martin (LMT) were also finalists for the deal, noted Caso. The analyst maintained a Market Perform rating on CSC. In early trading, CSC rose 0.68% to $39.87, while CACI added 0.86% to $54.85.

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