Why DXC Technology Is Down Nearly 20% Today
Shares of information technology outfit DXC Technology Company (NYSE: DXC) are down 19.9% as of 1:35 p.m. ET on Thursday. The decline follows a disappointing fiscal first-quarter report and similarly disappointing guidance for the quarter now underway.
Last quarter was even worse than expected for the company. Analysts were already calling for revenue to slide from the year-ago figure of $4.14 billion, but the actual figure of $3.71 billion still fell $10 million short of estimates. Per-share non-GAAP (adjusted) earnings fell from $0.84 to $0.75, versus a consensus of $0.82. Adjusted pre-tax, pre-interest income fell from $332 million to $259 million. The quarter's earnings results also fell short of the company's previous profit guidance between $0.80 and $0.85 per share, while the top line barely reached the lower end of the suggested range of $3.7 billion to $3.75 billion.
Guidance for the current quarter was similarly deflating. The company anticipates more than an 11% year-over-year revenue decline, to just a little less than $3.6 billion, with earnings expected to fall from the year-ago figure of $0.90 per share to somewhere between $0.70 and $0.75 per share for the three-month stretch ending in September. Analysts had been modeling revenue of just under $3.7 billion and profits of $0.93 per share.
Source Fool.com
