Computer Sciences Warns of Massive One-Time Charge; Shares Tumble (CSC)

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Technology services provider Computer Sciences Corporation ( CSC ) late Tuesday warned that it would take a big one-time charge in 2012 related to an ongoing contract in the U.K.

The Falls Church, VA-based company said it expects to record a $9.91 per-share charge in fiscal 2012 due to uncertainty surrounding a big contract with Britain's National Health Service ( NHS ). The ongoing dispute over the big governmental contract has been a big overhang for CSC since November.

As a result, CSC forecast a fourth quarter net loss of 92 cents to 96 cents per share, on revenue of $4.1 billion. Excluding one-time items, adjusted profit is expected to be 19 cents to 21 cents.

Computer Sciences shares plunged $1.87, or -6.6%, in premarket trading Wednesday.

The Bottom Line
Shares of Computer Sciences ( CSC ) have a 2.84% dividend yield, based on last night's closing stock price of $28.18. The stock has technical support in the $23-$25 price area. If the shares can firm up, we see overhead resistance around the $30-$33 price levels.

Computer Sciences Corporation ( CSC ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: CSC , NHS

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