Why DXC Technology's Shares Crashed Hard Last Month
Shares of DXC Technology (NYSE: DXC) fell 40.4% in August 2019, according to data from S&P Global Market Intelligence. The provider of IT services, born two years ago when Hewlett Packard Enterprises (NYSE: HPE) spun out its enterprise services division to merge with Computer Sciences Corp., reported decent first-quarter results paired with disappointing guidance. The stock plunged more than 30% lower in a single day on that report.
DXC's revenues fell 7.4% year over year to $4.89 billion. Adjusted earnings dropped from $1.93 to $1.74 per share over the same period. The analyst consensus had called for earnings near $1.70 per share on top-line sales in the neighborhood of $4.86 billion, and DXC exceeded both of those targets.
However, management also slashed full-year earnings guidance from $8.13 to $7.38 per share -- a 9% haircut. The full-year revenue forecast also got a 2% shave, landing at $20.45 billion. The analyst view at the time had been calling for full-year earnings near $8.20 per share on approximately $20.8 billion in top-line sales.
Source Fool.com
