Computer Sciences Posts Disappointing Sales
Computer Sciences Corp. reported lower-than-expected third-quarter revenue late Monday, pushing its shares down more than 5% in after-hours trade. The enterprise IT company reported a net loss of $314 million, or $2.23 a share, compared with a year-earlier profit of $271 million, or $1.81 a share. Excluding one-time items, such as charges related to an SEC settlement and pension costs, the company reported earnings per share of $1.18, topping average analyst estimates of $1.12, according to FactSet data. Revenue for the three months ended Jan. 1 decreased to $2.9 billion from $3.2 billion a year ago, missing the consensus estimate of $3.3 billion. The company said it lowered costs during the quarter, helping to improve margins by 80 basis points to 11.3% during the quarter, but said the contribution from new products was "not yet large enough" to offset industry headwinds impacting its traditional commercial business.
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