Why Computer Sciences Corporation Shares Popped Today

Is Computer Sciences' jump meaningful? Or just another movement?

May 9, 2014 at 4:29PM

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: Shares of Computer Sciences Corporation (NYSE:CSC) jumped more than 10% early Friday, then settled to close up around 8% after IT services specialist turned in solid fiscal fourth-quarter 2014 results.

So what: Quarterly revenue fell 4.9%, to $3.33 billion, which translated to earnings of $1.17 per diluted share -- and that includes a $0.02 per share loss from discontinued operations. CSC also repurchased 2.5 million shares during the quarter at an average price of $60.63 per share. Analysts, on average, were looking for quarterly earnings of just $1.04 per share on slightly higher sales of $3.36 billion.

For fiscal 2015, Computer Sciences Corporation is targeting revenue to be "flat to slightly up," with earnings per share from continuing operations of $4.35 to $4.55. The midpoint of that range is slightly above analysts' expectations, which called for fiscal 2015 earnings of $4.43 per share.

Now what: CEO John Michael Lawrie did warn, however, that "near-term sluggishness" in the North American Public Sector will likely cause the first half of this fiscal year to be slower, though it should be followed by "better momentum in the second half." To reward investors for their patience in the meantime, Computer Sciences' board not only approved a new $1.5 billion share repurchase authorization, but also increased the quarterly dividend by 15%, to $0.23 per share.

In the end, for those who don't mind collecting a dividend and waiting for CSC's business to gain steam, I think Computer Sciences Corporation stock looks like a solid long-term bet.

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Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. 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.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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