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Free Post Earnings Research Report: DXC Technology’s Revenue Surged 229.30%; Beat Expectations

LONDON, UK / ACCESSWIRE / December 19, 2017 / Active-Investors free earnings report on DXC Technology Co. (NYSE: DXC) ("DXC") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=DXC. The Company posted its second quarter fiscal 2018 operating results on November 07, 2017. The leading end-to-end IT services operator, which was formed as a result of the merger between Computer Sciences and the Enterprise Division of Hewlett Packard Enterprise on April 01, 2017, reported an earnings growth of 115.45%. Register today and get free access to our complimentary member's area where many more reports are available:

www.active-investors.com/registration-sg

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, DXC Technology most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

www.active-investors.com/registration-sg/?symbol=DXC

Earnings Highlights and Summary

In Q2 FY18, DXC's revenues surged 229.39% to $6.16 billion compared to $1.87 billion in Q2 FY17. The Company's revenue numbers topped analysts' estimates of $5.99 billion.

DXC's non-GAAP selling and administrative expenses were $606.00 million in Q2 FY18 compared to $539.00 million in Q2 FY17, advancing 12.43% on a y-o-y basis. The Company's adjusted earnings before interest and taxes (EBIT) was $876.00 million in the reported quarter compared to $380.00 million in Q2 FY17, increasing 130.53% on a y-o-y basis.

In Q2 FY18, DXC's net income was $265.00 million - inclusive of $146.00 million of restructuring costs; $43.00 million of transaction and integration-related costs; and $112.00 million of amortization of acquired tangibles costs - compared to $123.00 million in Q2 FY17, reflecting a growth of 115.45% on a y-o-y basis. DXC's non-GAAP net income from continuing operations was $556.00 million in the reported quarter compared to $225.00 million in Q2 FY17, reflecting a growth of 147.11% on a y-o-y basis.

The Company's diluted earnings per share (EPS) surged 91.30% to $0.88 in the reported quarter compared to $0.46 in Q2 FY17, on a pro-forma combined Company basis. DXC's non-GAAP earnings were $1.93 per share in Q2 FY18, beating analysts' estimates of $1.53 per share.

Segment Details

DXC's Global Business Services (GBS) segment's revenues were $2.31 billion in Q2 FY18 compared to $1.04 billion in Q2 FY17, surging by 123.29%. On a pro-forma combined Company basis, the segment's revenue decreased 4.30% from $2.39 billion in Q2 FY17, due to the completion of two large government contracts in the UK.

The Company's Global Infrastructure Services (GIS) segment's revenues were $3.14 billion in Q2 FY18 compared to $836.00 million in Q2 FY17, surging 275.84% on a y-o-y basis. On a pro-forma combined Company basis, the segment's revenue decreased 4.80% from $3.29 billion in Q2 FY17, due to the continued moderation of headwinds in legacy infrastructure.

DXC's United States Public Sector (USPS) segment's revenues were $710.00 million in Q2 FY18. On a pro-forma combined Company basis, the segment's revenue increased 5.50% from $674.00 million in Q2 FY17.

Cash Matters

DXC had a cash and cash equivalents balance of $2.67 billion as on September 30, 2017, compared to $1.05 billion as on September 30, 2016. The Company posted a net cash inflow from operating activities of $1.54 billion in Q2 FY18 compared to $242.00 million in Q2 FY17. DXC paid $51.00 million as part of dividends and made a share repurchase of $47.00 million in Q2 FY18. It declared $0.18 of quarterly cash dividends on November 11, 2017, which would be paid on January 16, 2018, to stockholders of record at the close of business on December 06, 2017. The Company's adjusted free cash flow was $589.00 million in the reported quarter, along with a capital expenditure of $553.00 million in Q2 FY18.

Outlook

For the full fiscal year 2018, DXC expects revenues of $24.00 billion - $24.50 billion, along with non-GAAP EPS of $7.25 - $7.75 per share.

Stock Performance Snapshot

December 18, 2017 - At Monday's closing bell, DXC Technology's stock slightly rose 0.69%, ending the trading session at $95.91.

Volume traded for the day: 1.40 million shares.

Stock performance in the last three-month – up 13.14%; previous six-month period – up 26.33%; past twelve-month period – up 59.24%; and year-to-date – up 61.41%

After yesterday's close, DXC Technology's market cap was at $27.32 billion.

Price to Earnings (P/E) ratio was at 159.85.

The stock has a dividend yield of 0.75%.

The stock is part of the Technology sector, categorized under the Information Technology Services industry. This sector was up 0.9% at the end of the session.

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