CSC Beats Earnings and Raises Guidance
Computer Science Corp. (NYSE: CSC) is trying to make its comeback more and more of a reality. The IT solutions provider reported earnings of $0.83 per share and total revenue of $3.85 billion in the third quarter. The company posted a loss last year, but revenues were also slightly higher a year ago at $3.97 billion. That 3% decline would have been a 1% decline outside of currency adjustments. Thomson Reuters was expecting $0.47 EPS and $3.88 billion.
The company claims progress has been made in the contract management performance and cost controls, which helped operating margins in all three lines of business when compared with the prior year. As a result, CSC is raising its fiscal year 2013 (March) earnings to a range of $2.30 to $2.50 per share. Thomson Reuters is calling for $2.24 EPS.
Operating income was $298 million in the quarter and its operating margin was 7.7%. Excluding the impact of a $269 million U.S. claims settlement in the prior year, operating margin improved by 289 basis points. Operating cash flow was $444 million for the quarter and the ending cash and cash equivalents were $1.85 billion at the end of the quarter.
CSC shares are indicated higher after closing at $31.46 and the 52-week range is $22.19 to $34.74.
JON C. OGG