U.S. Markets close in 5 hrs 49 mins

CSC hits multiyear high as 3Q results top Street

NEW YORK (AP) -- Shares of Computer Sciences Corp. soared to a multiyear high Friday as the information technology company's latest results topped Wall Street's expectations and it boosted its full-year earnings forecast.

Late Thursday, CSC reported fiscal third-quarter earnings from continuing operations of 98 cents per share on revenue of $3.23 billion. Analysts polled by FactSet predicted earnings of 84 cents per share on revenue of $3.22 billion.

CSC now foresees full-year earnings from continuing operations between $3.80 and $3.90 per share. Its previous guidance was for $3.50 to $3.70 per share.

Wall Street was expecting earnings of $3.69 per share.

Janney Capital Markets' Joseph Foresi said CSC's quarterly earnings were helped by cost-cutting efforts. The analyst said the company deserves credit for reducing costs and expanding margins, but said CSC is still dealing with the challenges of a government spending slowdown and maturation of the outsourcing industry.

Foresi kept a "Neutral" rating and increased CSC's price target to $55 from $52.

David Grossman of Stifel Nicolaus said that he thinks the cost-control efforts appear to be somewhat accounted for in the current stock price and views sustainable revenue growth as the next catalyst for the shares.

Grossman maintained a "Buy" rating and lifted CSC's price target to $60 from $58.

Moshe Katri of Cowen and Co. reiterated an "Outperform rating." The analyst anticipates further operational improvements from ongoing restructuring.

CSC's stock jumped $5.42, or 10 percent, to $60.58 in afternoon trading. Earlier in the session the shares reached $61.79. That's the highest point since July 2007.