Why Computer Sciences Corporation Shares Tanked Today
What: Shares of Computer Sciences Corporation tanked on Wednesday, down by 12% as of 1:37 p.m. EST, after the company reported mixed earnings results.
So what: Revenue in the fiscal third quarter came in at $1.75 billion, down 10% from a year ago. Adjusted non-GAAP earnings per share was $0.71. The top and bottom line results were mixed relative to expectations. The Street was expecting $1.86 billion in revenue and $0.69 per share in adjusted profit. Computer Sciences Corporation also completed the spin off of its public-sector business during the quarter.
Now what: The Global Infrastructure Services business saw sales fall as its legacy business continued to decline. Computer Sciences Corporation returned $32 million in capital to shareholders during the quarter through dividends and share repurchases. The company is now turning its attention to closing two other acquisitions that were previously announced. The UXC acquisition is expected to close by the end of this month, and the Xchanging deal is proceeding through regulatory approvals.
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