CSC Earnings Top Estimate; Boosts Outlook Again

(RTTNews) - Information technology service provider Computer Sciences Corp. (CSC) said Thursday after the markets closed that its third quarter net profit fell 72% from last year, when results were boosted by hefty income from discontinued operations.

However, the company's quarterly earnings per share from continuing operations rose 38% from last year and beat analysts' estimate. At the same time, the company once again raised its fiscal 2014 earnings outlook.

"We are pleased with our financial results and continued progress on cost takeout which is driving strong year-over-year margin expansion, earnings and free cash flow growth," said Mike Lawrie, CSC president and CEO.

Computer Sciences shares closed Thursday's regular trading session at $55.16, up $1.12 or 2.07%, and remained unchanged in after hours trading. The shares trade in a 52-week range of $41.73 to $57.42.

For the third quarter ended December 27, 2013, the Falls Church, Virginia-based company reported net income of $141 million or $0.94 per share, compared to $510 million or $3.27 per share for the year-ago quarter.

Earnings from continuing operations for the third quarter were $0.98 per share, compared to $0.71 per share in the prior year quarter.

On average, 13 analysts polled by Thomson Reuters expected the company to earn $0.84 per share for the third quarter.

Operating margin for the quarter improved to 9.8% from 7.4% a year earlier.

Revenue for the third quarter fell 9% to $3.23 billion from $3.54 billion in the same quarter last year. Eleven analyst had a consensus revenue estimate of $3.23 billion for the third quarter.

Segment wise, Global Business Services revenue for the quarter fell 9% to $1.11 billion, while Global Infrastructure Services revenue declined 3% to $1.15 billion and North American Public Sector revenue dropped 14% to $990 million.

New business awards rose 14% year-over-year to $3.3 billion in the third quarter.

The company raised its fiscal 2014 outlook for earnings from continuing operations to a range of $3.80 to $3.90 per share from its prior outlook of $3.50 to $3.70 per share. Analysts currently expect the company to earn $3.68 per share for the fiscal year 2014.