How DXC Technology's Stock Gained 35% Last Month

Shares of DXC Technology (NYSE: DXC) rose 34.9% in November 2019, according to data from S&P Global Market Intelligence. The provider of enterprise-class IT services entered the month at a negative return of 48% year to date, due to disappointing financial forecasts and a sudden change of leadership. The company finally caught a break in mid-November, when share prices surged as much as 20% in a single day on the heels of a disappointing earnings report paired with cuts to DXC's full-year guidance. Management also announced a wide-ranging reorganization of the entire company, including plans to sell off businesses that are no longer part of DXC's core operations.

Yes, DXC really surged on the back of a terrible earnings report. Analysts had been looking for second-quarter earnings near $1.42 per share on sales in the neighborhood of $4.92 billion. The company produced adjusted earnings of $1.38 per share on revenues of $4.85 billion. Looking ahead, management slashed its full-year earnings target from roughly $7.38 per share to $5.50 per share alongside a 4% cut to the annual revenue target.

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Source Fool.com