FALLS CHURCH, Va. (AP) -- Computer Sciences Corp. said Tuesday that its fiscal first-quarter net income more than tripled as turnaround efforts began to pay off. The Falls Church, Va., technology company also increased its earnings forecast and announced a new partnership agreement with AT&T.
Its shares jumped 5 percent in after-hours trading following the announcements.
CSC has been cutting costs to improve its profitability and also sold parts of its business, while investing in other segments to drive longer-term growth. President and CEO Mike Lawrie said the company is encouraged by the pace of the turnaround.
Based on the company's current progress, CSC expects to earn $3.50 to $3.70 per share for the full year from continuing operations, up 20 cents from its prior forecast. Analysts polled by FactSet were anticipating earnings of $3.47 per share for the year.
CSC reported after the market closed that its net income grew to $156 million, or $1.02 per share, for the period that ended June 28. That is up from $40 million, or 26 cents per share, in the same quarter last year.
Earnings from continuing operations amounted to 91 cents a share in the latest quarter. On that basis, analysts were expecting 69 cents a share.
Its revenue slipped to $3.26 billion from $3.63 billion. Analysts were anticipating revenue of $3.56 billion.
CSC also said Tuesday that it has signed an agreement to work with AT&T to help business customers move more quickly to the cloud. The companies will combine CSC's cloud expertise and services with AT&T's network and cloud infrastructure platform.
CSC will provide application expertise to AT&T and its customers. AT&T will assume management of some of CSC's networks with commercial clients. The agreement will remain in place until 2020, with the option to extend.
Shares of the company rose $2.34 to $52.30 after hours. Its stock price fell 23 cents to close regular trading at $49.96.