DXC Technology Co (DXC) Reports Q2 FY24 Earnings: Revenue Down 3.6%, Diluted EPS Up to $0.49
DXC Technology Co (NYSE:DXC) reported Q2 FY24 revenues of $3.44 billion, a decrease of 3.6% compared to the prior year period.
Diluted Earnings Per Share (EPS) was $0.49, a significant increase from $0.12 in the prior year quarter.
Operating cash flow for Q2 FY24 was $248 million, resulting in $91 million of free cash flow after capital expenditures of $157 million.
The company returned $214 million to shareholders through share buyback in Q2 FY24, reducing DXC shares outstanding by 4.9%.
DXC Technology Co (NYSE:DXC) released its earnings for the second quarter of the fiscal year 2024 on November 1, 2023. The company reported revenues of $3.44 billion, down 3.6% compared to the same period last year. The diluted EPS for the quarter was $0.49, a significant increase from $0.12 in the prior year quarter. The company's operating cash flow for the quarter was $248 million, and after accounting for capital expenditures of $157 million, the free cash flow stood at $91 million.
Financial Performance
Net income for the quarter was $99 million, or 2.9% of sales, compared to $28 million, or 0.8% of sales, in the prior year quarter. The increase in net income was attributed to lower depreciation and amortization and lower restructuring costs. The company's EBIT was $153 million or 4.5% of sales. The adjusted EBIT margin was 7.3% in the second quarter, a reduction of 20 bps compared to the prior year, mainly due to a lower level of pension income, which declined $22 million year over year.
Segment Performance
The Global Business Services (GBS) segment reported revenue of $1,709 million, down 0.2% compared to the prior year period but up 2.4% on an organic basis. The Global Infrastructure Services (GIS) segment reported revenue of $1,727 million, down 6.8% compared to the prior year period, and down 9.1% on an organic basis.
Cash Flow and Share Buyback
Cash flow from operations was $248 million in the second quarter of fiscal year 2024, compared to $212 million in the same period last year. Capital expenditures were $157 million, compared to $195 million in the prior year period. Free cash flow was $91 million, compared to $17 million in the prior year period. During the quarter, the company repurchased 10 million shares of common stock for a total of $214 million.
Looking Forward
DXC Technology Co (NYSE:DXC) did not provide a reconciliation of Non-GAAP measures that it discusses as part of its guidance because certain significant information required for such reconciliation is not available without unreasonable efforts or at all, including, most notably, the impact of significant non-recurring items.
Explore the complete 8-K earnings release (here) from DXC Technology Co for further details.
This article first appeared on GuruFocus.
