CSC Falls Most Since 2011 as Sales Miss Estimates
Computer Sciences Corp. (CSC), a technology consultant for governments and companies, fell the most since 2011 after reporting sales that missed analysts’ estimates.
The shares tumbled 9.7 percent to $44.71 at the close in New York, the most since Nov. 9, 2011. The Falls Church, Virginia-based company has gained 12 percent this year, compared with a 16 percent rise in the Standard & Poor’s 500 Index.
Chief Executive Officer Mike Lawrie, more than one year into the job, has been moving away from traditional infrastructure sales and focusing on industry software and services. He has said that revenue might suffer as the company transforms itself. During the quarter the business-solutions unit reported a 12 percent decline in sales after selling an Australian IT staffing company and the North American public-sector unit posted a 6.8 percent drop.
“We are making significant investments in our business -- employees, offerings, systems, and partnerships -- designed to enhance our competitive position and long-term earnings growth,” Lawrie said in a statement today.
Fourth-quarter revenue for the period ended March 29 fell 7.3 percent to $3.7 billion. That trailed the $3.8 billion analysts had estimated.
Earnings excluding a 24-cent gain on the sale of the Australian business and other items was $1.27, compared with the $1 analyst estimate. The company also said it now sees full-year per share earnings of $3.30 to $3.50 a share, compared with a February forecast of $3.30.
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