CSC 2Q Net Soars On Tax Gain; Sees 3Q Below Views
But the company projected third-quarter results below analysts' expectations. Still, shares were up .1% at $28 in recent after-hours trading after falling 5% during the regular session during a broad market swoon.
Separately, the information-technology provider announced Michael J. Mancuso will become its chief financial officer starting Dec. 1. Donald DeBuck had been interim CFO since February while Mancuso has spent the past 14 years as General Dynamics Corp.'s (GD) financial chief.
For the quarter ended Oct. 3, CSC reported net income of $451.7 million, or $2.95 a share, up from $75.8 million, or 43 cents a share, a year ago. The latest results included a net $2.26 in tax gains, including that from the conclusion of a long-running IRS probe that clears the company to use nearly $900 million in tax benefits.
Revenue rose 5.5% to $4.24 billion amid similar gains across the firm, which at its core has been a provider of IT services to governments.
In August, CSC expected per-share earnings of 70 cents to 80 cents on revenue of $4.25 billion to $4.35 billion.
The company received $4.6 billion in new awards during the quarter, with the fiscal year-to-date total up 45%.
Looking forward, the company expects third-quarter earnings of $1 to $1.10 a share on revenue of $4.1 billion to $4.2 billion. Analysts polled by Thomson Reuters were looking for profits of $1.13 per share on revenue of $4.28 billion.
In September, Computer Sciences launched a rebranding effort to diversify outside of its core business into fast-growing consulting and software development industry. The move represented a major strategic shift for the company which has been known to keep a low profile.
-By John Kell and Tess Stynes, Dow Jones Newswires; 201-938-5285; John.Kell@dowjones.com;
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(END) Dow Jones Newswires
November 12, 2008 17:04 ET (22:04 GMT)
Publié le 12 novembre 2008 Copyright © 2008 Dowjones
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