Why Computer Sciences Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Computer Sciences have popped today by more than 12% after the company reported earnings this morning with strong outlook.
So what: Revenue during the quarter added up to $3.78 billion, narrowly topping investor expectations. Earnings per share of $0.77 easily beat the consensus estimate of $0.62 per share. Including restructuring charges, the company realized an operating margin of 7.1%.
Now what: The company's turnaround is panning out nicely and its efforts to grow margins are going according to plan. That's leading Computer Sciences to boost its fiscal year 2013 EPS outlook to $2.50 to $2.70, well ahead of the Street's best guesses of $2.37 per share in profit for fiscal 2013. CEO Mike Lawrie said the company divested non-core businesses and is returning cash to shareholders.
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The article Why Computer Sciences Shares Popped originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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