Computer Sciences (NYSE: CSC ) reported earnings on Feb. 5. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 28 (Q3), Computer Sciences met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share grew.
Margins grew across the board.
Computer Sciences notched revenue of $3.78 billion. The 13 analysts polled by S&P Capital IQ hoped for revenue of $3.75 billion on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $3.76 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.77. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.62 per share. GAAP EPS were $3.27 for Q3 versus -$8.96 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.8%, 680 basis points better than the prior-year quarter. Operating margin was 6.3%, 760 basis points better than the prior-year quarter. Net margin was 13.5%, 5,040 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.91 billion. On the bottom line, the average EPS estimate is $0.85.
Next year's average estimate for revenue is $15.37 billion. The average EPS estimate is $2.55.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 246 members out of 290 rating the stock outperform, and 44 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Computer Sciences a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Computer Sciences is hold, with an average price target of $37.96.
Is Computer Sciences playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.