CSC Profit Tops Estimate

(RTTNews) - Information technology service provider Computer Sciences Corp. (CSC) said Thursday after the markets closed that its fourth quarter net profit fell 38% from last year, when results were boosted by a hefty income tax benefit.

However, the company's quarterly adjusted earnings per share from continuing operations came in above analysts' expectations. At the same time, the company gave a slightly upbeat earnings outlook for the current fiscal year.

"During fiscal 2014, CSC's cost takeout initiatives drove significant increases to our profit margins and free cash flow. We finished the year with another quarter of sequential revenue growth and bookings growth," said Mike Lawrie, president and CEO.

The company also said its Board of Directors has approved a 15% increase to the company's quarterly common stock dividend to $0.23 per share. The company's board has also authorized a new $1.5 billion stock buyback program.

Computer Sciences shares are currently gaining 0.19% in after hours trading after closing the day's regular trading session at $58.04, up 2 cents. The shares trade in a 52-week range of $42.43 to $64.10.

For the fourth quarter ended March 28, 2014, the Falls Church, Virginia-based company reported net income of $174 million or $1.17 per share, compared to $281 million or $1.81 per share for the year-ago quarter.

Earnings per share from continuing operations for the fourth quarter was $1.19, compared to $1.56 in the prior year quarter.

Excluding items, adjusted earnings per share from continuing operations for the fourth quarter was $1.09, compared to $1.22 in the fourth quarter of last year.

On average, 13 analysts polled by Thomson Reuters expected the company to earn $1.04 per share for the fourth quarter. Analysts' estimates typically exclude special items.

The year-ago results included an income tax benefit of $144 million.

Total revenue for the fourth quarter fell 5% to $3.33 billion from $3.50 billion in the same quarter last year. Twelve analyst had a consensus revenue estimate of $3.36 billion for the fourth quarter.

Segment wise, Global Business Services revenue for the quarter fell 3.3% to $1.18 billion, while Global Infrastructure Services revenue remained flat with last year at $1.19 billion and North American Public Sector revenue dropped 11% to $1.0 million.

New business awards rose 43% year-over-year to $4.3 billion in the fourth quarter.

Looking forward, the company forecasts fiscal 2015 earnings of $4.35 to $4.55 per share. Analysts currently expect the company to earn $4.43 per share for the fiscal year 2015.