Computer Sciences Beats on EPS but GAAP Results Lag
Computer Sciences (NYS: CSC) reported earnings on Feb. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 30 (Q3), Computer Sciences met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
Computer Sciences reported revenue of $3.97 billion. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $3.99 billion. GAAP sales were 5.8% lower than the prior-year quarter's $4.0 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.35. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.58 per share on the same basis. GAAP EPS were -$8.96 for Q3 compared to $1.54 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was -20.0%, 3,940 basis points worse than the prior-year quarter. Operating margin was -35.7%, 4,230 basis points worse than the prior-year quarter. Net margin was -36.9%, 4,300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.22 billion. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $16.25 billion. The average EPS estimate is $3.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 263 members out of 303 rating the stock outperform, and 40 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Computer Sciences a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Computer Sciences is hold, with an average price target of $28.17.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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