DXC Technology Company Shares Surge 16% Despite Q4 Miss, Long-Term Outlook Attractive
DXC Technology Company (NYSE:DXC) closed nearly 16% higher on Thursday despite the company’s reported Q4 results, with EPS of $0.84 coming in worse than the Street estimate of $0.99, mainly driven by topline softness, costs from exiting Russia, higher operating costs, and a higher than the anticipated tax rate. Revenue was $4.01 billion, missing the Street estimate of $4.12 billion.
The company’s guidance also came in worse than the Street estimates. Q1/23 EPS is expected in the range of $0.80-$0.85, compared to the consensus of $0.94, and revenue in the range of $3.7-3.75 billion, compared to the consensus of $4.03 billion. For the full 2023-year, the company expects EPS of $3.85-$4.15, compared to the consensus of $4.25, and revenue of $14.9-15.05 billion, compared to the consensus of $16.12 billion.
The share price increase, despite the miss, was probably due to investors focusing on the company’s attractive long-term outlook, with the company reiterating its targets for 2024 for 1%-3% organic revenue growth and around $1.5 billion in Free Cash Flow.
| Symbol | Price | %chg |
|---|---|---|
| DCII.JK | 260150 | 0 |
| MLPT.JK | 80000 | 0 |
| WIFI.JK | 3070 | 0 |
| 034730.KS | 248500 | 0 |
DXC Technology Company's Analyst Confidence and Earnings Performance
- Recent fluctuations in DXC Technology Company's (NYSE:DXC) consensus price target reflect varying analyst confidence levels.
- The company's strong third-quarter earnings, particularly in insurance software and BPS sectors, have contributed to a positive outlook.
- DXC's upgrade to a Zacks Rank #1 (Strong Buy) indicates growing optimism about its future earnings prospects.
DXC Technology Company (NYSE:DXC) is a global IT services provider that offers a range of services, including insurance software and business process services (BPS). The company has experienced fluctuations in its consensus price target over the past year, reflecting varying levels of analyst confidence in its performance and prospects.
Last month, the average price target for DXC was $22, a slight decrease from the previous quarter's $23.5. This suggests a recent pullback in analyst optimism, possibly due to market conditions or company-specific factors. However, the target remains higher than last year's $19.21, indicating overall growing confidence in DXC's potential.
DXC's strong third-quarter earnings, driven by its insurance software and BPS sectors, have contributed to a positive outlook. The company reported earnings of $0.92 per share, surpassing the Zacks Consensus Estimate of $0.77. This performance has led Wells Fargo analyst Timothy Willi to set a price target of $48, highlighting optimism about DXC's future.
The recent earnings conference call, featuring key figures like CEO Raul Fernandez and CFO Rob Del Bene, provided insights into DXC's strategic initiatives. Analysts from major financial institutions participated, reflecting significant interest in the company's prospects. The call likely focused on DXC's financial performance and future plans.
Despite the recent pullback in the average price target, DXC's upgrade to a Zacks Rank #1 (Strong Buy) indicates increased optimism about its earnings prospects. This upgrade, along with the positive earnings report, could potentially drive the stock price higher in the near term, aligning with the optimistic price target set by Wells Fargo.
DXC Technology Company's Analyst Confidence and Earnings Performance
- Recent fluctuations in DXC Technology Company's (NYSE:DXC) consensus price target reflect varying analyst confidence levels.
- The company's strong third-quarter earnings, particularly in insurance software and BPS sectors, have contributed to a positive outlook.
- DXC's upgrade to a Zacks Rank #1 (Strong Buy) indicates growing optimism about its future earnings prospects.
DXC Technology Company (NYSE:DXC) is a global IT services provider that offers a range of services, including insurance software and business process services (BPS). The company has experienced fluctuations in its consensus price target over the past year, reflecting varying levels of analyst confidence in its performance and prospects.
Last month, the average price target for DXC was $22, a slight decrease from the previous quarter's $23.5. This suggests a recent pullback in analyst optimism, possibly due to market conditions or company-specific factors. However, the target remains higher than last year's $19.21, indicating overall growing confidence in DXC's potential.
DXC's strong third-quarter earnings, driven by its insurance software and BPS sectors, have contributed to a positive outlook. The company reported earnings of $0.92 per share, surpassing the Zacks Consensus Estimate of $0.77. This performance has led Wells Fargo analyst Timothy Willi to set a price target of $48, highlighting optimism about DXC's future.
The recent earnings conference call, featuring key figures like CEO Raul Fernandez and CFO Rob Del Bene, provided insights into DXC's strategic initiatives. Analysts from major financial institutions participated, reflecting significant interest in the company's prospects. The call likely focused on DXC's financial performance and future plans.
Despite the recent pullback in the average price target, DXC's upgrade to a Zacks Rank #1 (Strong Buy) indicates increased optimism about its earnings prospects. This upgrade, along with the positive earnings report, could potentially drive the stock price higher in the near term, aligning with the optimistic price target set by Wells Fargo.
DXC Technology's Financial Performance Analysis
- DXC Technology reported an EPS of -$1.10, missing expectations but exceeding revenue forecasts with $3.39 billion.
- The company's ability to surpass revenue expectations despite a decrease from the previous year showcases its resilience in the competitive computer and IT services industry.
- DXC Technology reveals a P/E ratio of approximately 39.55 and a D/E ratio of about 1.59, indicating market optimism tempered by a higher reliance on debt financing.
DXC Technology, a prominent player in the computer and IT services industry, recently disclosed its financial outcomes for the quarter ending March 2024. The company reported an earnings per share (EPS) of -$1.10, missing the anticipated EPS of $0.83, while its revenue of $3.39 billion slightly exceeded the expected $3.37 billion. This performance showcases the challenges and achievements DXC Technology faces in a competitive sector where maintaining revenue and earnings growth is crucial for success.
Despite the reported loss per share, DXC Technology's ability to surpass revenue expectations indicates a complex financial landscape. The company's revenue of $3.39 billion, a slight decrease from the previous year's $3.59 billion, still managed to beat the Zacks Consensus Estimate, reflecting a positive surprise of 0.42%. This demonstrates DXC's resilience and capability to generate revenue amidst industry challenges.
The earnings per share (EPS) of $0.97, although lower than the previous year's $1.02, exceeded the consensus estimate by a significant margin of 16.87%. This performance underscores DXC Technology's efficiency in managing its operations and expenses, enabling it to outperform analyst predictions despite a year-over-year decline in EPS. Such a discrepancy between expected and actual EPS highlights not only the company's unpredictable financial trajectory but also its potential to deliver positive surprises.
DXC Technology's valuation metrics provide further insights into its financial health and market perception. With a price-to-earnings (P/E) ratio of approximately 39.55, investors seem willing to pay a premium for DXC's earnings, suggesting optimism about its future growth. However, the company's debt-to-equity (D/E) ratio of about 1.59 indicates a higher reliance on debt financing, which could pose risks to its financial stability. The current ratio of approximately 1.17, though, suggests that DXC maintains a reasonable balance between its assets and liabilities, ensuring short-term operational stability.
In the competitive computer and IT Services industry, DXC Technology's latest financial results and valuation metrics paint a picture of a company navigating through challenges with a strategic approach. While the EPS fell short of expectations, the slight revenue beat and the company's ability to exceed consensus estimates in key financial metrics demonstrate DXC's underlying strength. As the company continues to adapt and evolve, its financial performance will be closely watched by investors and industry analysts alike.
DXC Technology Reports Better Than Expected Q3, Shares Up 2%
DXC Technology (NYSE:DXC) shares rose more than 2% yesterday after the company reported its Q3 results, with EPS of $0.95 coming in better than the Street estimate of $0.83. Revenue was $3.57 billion, in line with expectations.
The company is starting to make some progress in its transformation journey generating an impressive $463 million in free cash flow in the quarter, while bookings increased sequentially to $4.8 billion (vs $3.0 billion in Q2/22).
As expected, the company lowered its preliminary 2024 outlook that was not realistic (originally given nearly 2 years ago) and now expects organic revenue growth to be flat to up 1% (up 1-3% prior) with free cash flow generation of up to $900 million (vs. $1.5 billion prior), a notable turnaround from historical growth rates.
DXC Technology Reports Better Than Expected Q3, Shares Up 2%
DXC Technology (NYSE:DXC) shares rose more than 2% yesterday after the company reported its Q3 results, with EPS of $0.95 coming in better than the Street estimate of $0.83. Revenue was $3.57 billion, in line with expectations.
The company is starting to make some progress in its transformation journey generating an impressive $463 million in free cash flow in the quarter, while bookings increased sequentially to $4.8 billion (vs $3.0 billion in Q2/22).
As expected, the company lowered its preliminary 2024 outlook that was not realistic (originally given nearly 2 years ago) and now expects organic revenue growth to be flat to up 1% (up 1-3% prior) with free cash flow generation of up to $900 million (vs. $1.5 billion prior), a notable turnaround from historical growth rates.
DXC Technology Company Shares Surge 16% Despite Q4 Miss, Long-Term Outlook Attractive
DXC Technology Company (NYSE:DXC) closed nearly 16% higher on Thursday despite the company’s reported Q4 results, with EPS of $0.84 coming in worse than the Street estimate of $0.99, mainly driven by topline softness, costs from exiting Russia, higher operating costs, and a higher than the anticipated tax rate. Revenue was $4.01 billion, missing the Street estimate of $4.12 billion.
The company’s guidance also came in worse than the Street estimates. Q1/23 EPS is expected in the range of $0.80-$0.85, compared to the consensus of $0.94, and revenue in the range of $3.7-3.75 billion, compared to the consensus of $4.03 billion. For the full 2023-year, the company expects EPS of $3.85-$4.15, compared to the consensus of $4.25, and revenue of $14.9-15.05 billion, compared to the consensus of $16.12 billion.
The share price increase, despite the miss, was probably due to investors focusing on the company’s attractive long-term outlook, with the company reiterating its targets for 2024 for 1%-3% organic revenue growth and around $1.5 billion in Free Cash Flow.
