DXC Technology cuts annual revenue forecast, shares tumble
(Reuters) - DXC Technology on Wednesday posted weaker-than-expected quarterly sales and lowered its annual revenue forecast, as the IT services provider grapples with tough competition and lower spending from businesses worried about a turbulent economy.
Shares of the company plunged about 15% in extended trading.
DXC said it now expects annual revenue to range between $13.88 billion and $14.03 billion, compared with its prior prediction of $14.40 billion to $14.55 billion.
The company has faced stiff competition in recent months from industry giants such as Accenture Plc, whose larger scale and more expansive business have given them an edge over the likes of DXC.
The company also generates sizeable revenue from outside the United States which makes it vulnerable to exchange rate fluctuations and geopolitical issues in an already uncertain market.
For the quarter to June 30, the company reported revenue of $3.45 billion, missing analysts' average estimate of $3.56 billion, according to Refinitiv data.
The company's adjusted profit fell to 63 cents per share in the quarter, compared with estimates of 82 cents.
(Reporting by Yamini Kalia in Bengaluru; Editing by Maju Samuel)
