DXC Technology shares jump 5% after mixed fiscal Q1 for company
Shares of DXC Technology Co. rose more than 6% in the extended session Thursday after the IT services company reported fiscal first-quarter sales above Wall Street expectations but missed on adjusted EPS forecasts. DXC said it lost $199 million, or 81 cents a share, in the quarter, contrasting with a profit of $168 million, or 61 cents a share, in the year-ago period. Adjusted for one-time items, the company earned $59 million, or 21 cents a share. Revenue fell to $4.5 billion from $4.9 billion a year ago. Analysts polled by FactSet had expected adjusted earnings of 65 cents a share on sales of $4.4 billion. "Our focus on customers is allowing us to stabilize revenues, expand margins, and bring the 'new DXC' to the market," Chief Executive Mike Salvino said in a statement. The company said it is on track with the sale of its U.S. state and local health and human services business in the second quarter; moreover, the previously announced sale of its healthcare software business "will further enhance our financial flexibility," it said. Shares of DXC Technology rose 1.1% in the extended session.
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