Markets
ACN

Computer Sciences Wins Task Order - Analyst Blog

A generic image of a person with a pen in hand
Credit: Shutterstock photo

Computer Sciences Corp. ( CSC ) recently secured a task order from the U.S. Department of State Bureau of Consular Affairs, for roughly $25.0 million. The contract has a time period of 1 year, extendable up to another 4 years.

Through this task order, Computer Sciences will provide support services for consular operations in Tel Aviv and Jerusalem. The comprehensive support service will include the processing of visa-related information, setting up appointments, collecting fees and greeting services. This in turn, will allow the Department to offer better cross-country services to its citizens.

Computer Sciences' rich industry experience and efficient services have made it popular amongst the various Governmental departments. Just a few days ago, the company clinched an information technology outsourcing deal with Royal Berkshire NHS (National Health Services) Foundation Trust.

The company also inked a five-year deal worth approximately $160.0 million a year with global defense and security company, BAE Systems. Moreover, the company secured $80.0 million worth of deals from the U.S. Missile Defense Agency.

Winning deals is not new for this Virginia-based tech giant. But headwinds in its government business are actually affecting the company's ability to execute the deals that it wins at regular intervals. The major headwinds are coming from the uncertainty in tech spending and delay in resolving the U.K. NHS issue.

Company officials are excited about the NHS deal with Royal Berkshire, as they think that it would actually help Computer Sciences to evolve as a key player in the healthcare sector and partially offset the loss of the U.K. NHS contract. We also believe that the success with the Royal Berkshire NHS Foundation Trust will add some luster to the company's fundamentals, which remain impacted by the U.K. issue.

However, Computer Sciences' disappointing second quarter 2012 results and stiff competition from Accenture plc ( ACN ) and Hewlett-Packard Company ( HPQ ) in the IT and cloud computing space concern us.

Computer Sciences has a Zacks #5 Rank, implying a short-term Strong Sell rating.

ACCENTURE PLC ( ACN ): Free Stock Analysis Report

COMP SCIENCE ( CSC ): Free Stock Analysis Report

HEWLETT PACKARD ( HPQ ): Free Stock Analysis Report

Zacks Investment Research

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


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

In This Story

ACN HPQ

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More