Computer Sciences Surges on Earnings Beat

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By Trey Thoelcke Published
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Net income for Computer Sciences Corp. (NYSE: CSC) fell to $42 million, or 26 cents per share, from $183 million, or $1.17 per share, in the same period of last year. And the company reported that revenue fell 1.9% to $3.96 billion. But analysts polled by Thomson Reuters had expected to see EPS of $0.22 on revenue of $3.89 billion.

On the upside, the IT provider announced that it had strong new bookings of $4.0 billion, and the operating margin of 4.6% increased by 16 basis points from the previous year. The operating cash flow of $221 million for the quarter was an improvement of $267 million from the previous year, and free cash flow of negative $25 million for the quarter was an improvement of $378 million over the previous year.

Mike Lawrie, president and CEO said:

We have launched several action plans which will transform the company over the next several years and create value for our shareholders. As part of this transformation agenda, we are bringing a much needed focus to greater contract management discipline across the company. We are also simplifying our operating model to realize greater productivity and operational efficiency. We are attacking our cost structure and we expect to realize about $1 billion in cost improvement over the next 18 months.

Shares jumped more than 13% in early trading to around $29.00. The 52-week trading range is $22.19 to $33.80. Thomson Reuters had a consensus analyst price target of $26.65 before this news.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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