Computer Sciences Climbs as Profit Forecast Tops Estimates
Computer Sciences Corp. (CSC), a technology consultant for governments and companies, gained the most in more than six months after forecasting earnings that were higher than analysts had estimated.
CSC shares rose 8.5 percent to $54.20 at the close in New York for the biggest one-day jump since Feb. 5. That brought the stock’s gain this year to 35 percent.
Earnings from continuing operations for the fiscal year, which ends in March, will be $3.50 per share to $3.70 per share, the Falls Church, Virginia-based company said in a statement. That compares with the $3.52 average estimate of analysts compiled by Bloomberg. Earnings from continuing operations for the period ended June 28 were 91 cents, compared with 10 cents in the year-earlier period.
The company is cutting costs and striking partnerships to increase earnings under Chief Executive Officer Mike Lawrie. He has been moving away from traditional infrastructure sales and focusing instead on software and services.
“We are encouraged with the pace of our turnaround,” Lawrie said in the statement. “The company is beginning to pivot more towards growth and we are investing in offerings and partnerships that will enhance our differentiation and expand our market coverage.”
CSC signed a deal for a partnership with AT&T Inc., the largest U.S. phone company, to develop services such as cloud computing for corporate clients, according to a separate statement.