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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.
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