Computer Sciences returns to profit in 4Q
Computer Sciences returned to a profit in its fiscal fourth quarter, bolstered in part by a tax benefit and gain on the sale of an Australian IT staffing business.
The company, which provides information technology services to a wide range of industries, also boosted its fiscal 2014 forecast for earnings from continuing operations on Wednesday.
Shares rose in premarket trading.
Computer Sciences Corp. earned $281 million, or $1.81 per share, for the period ended March 29. That compares with a loss of $158 million, or $1.02 per share, in the prior-year period.
Excluding a tax planning benefit of $1.02 per share, a gain of 24 cents per share on the sale of an Australian IT staffing business, restructuring charges and other items, earnings from continuing operations were $1.27 per share.
Analysts were looking for earnings of 98 cents per share, according to a FactSet poll.
Shares of Computer Sciences climbed 54 cents to $50.03 about a half-hour before the market open.
Total costs and expenses declined to $3.59 billion from $4.17 billion.
Revenue fell 7 percent to $3.7 billion from $3.99 billion as revenue dropped across all segments. Wall Street expected $3.85 billion in revenue.
Managed services sector revenue declined 4 percent to $1.63 billion, while business solutions and services revenue fell 12 percent to $800 million. Revenue for the North American public sector slipped 7 percent to $1.31 billion.
Computer Sciences' full-year net income was $961 million, or $6.18 per share. A year earlier the Falls Church, Va. company lost $4.24 billion, or $27.37 per share.
Adjusted earnings from continuing operations were $2.90 per share.
Annual revenue declined 2 percent to $14.99 billion from $15.36 billion.
The company now anticipates fiscal 2014 earnings from continuing operations between $3.30 and $3.50 per share. Its prior outlook called for $2.50 to $2.70 per share.
Analysts expect earnings of $3.53 per share for the year.