Computer Sciences Corp. Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Computer Sciences Corp. (NYSE: CSC  ) dropped 18% in intraday trading today after reporting disappointing earnings and issuing disappointing guidance

So what: Preliminary fourth-fiscal-quarter EPS of $1.09 fell 34% year over year and missed the consensus estimate of $1.11. Guidance for the new fiscal year is EPS of $4.70 to $4.80, well below the consensus estimate of $5.13.

Now what: Management expects 3% to 6% revenue growth and flattish EPS growth in the coming year. Delays in federal contracting decisions and the reworking of a multiyear contract with the U.K. National Health Service are hurting financial performance. An SEC investigation announced in February has the potential to result in a downward restatement of prior earnings.

Interested in more info on CSC? Add it to your watchlist by clicking here.

Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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