Shares of DXC Technology (NYSE:DXC) slumped on Friday after the IT services provider reported mixed fiscal fourth-quarter results, suspended its dividend, and booked a large goodwill impairment charge. The stock was down about 12.9% at 1:10 p.m. EDT.
DXC reported fourth-quarter revenue of $4.82 billion, down 8.8% year over year and $40 million below the average analyst estimate. Revenue in the global business services segment rose 5.3% to $2.31 billion, while revenue in the global infrastructure services segment tumbled 18.8% to $2.51 billion.
Non-GAAP (adjusted) earnings per share came in at $1.20, down from $2.19 in the prior-year period but $0.24 higher than analysts were expecting. On a GAAP basis, DXC posted a net loss of $13.79 per share. This number included a $15 per share goodwill impairment charge, as well as a variety of smaller items.
While DXC paid a dividend to shareholders during the fourth quarter, the company has decided to suspend the dividend going forward to "enhance the company's financial flexibility under current uncertain market conditions."
DXC's report triggered an analyst downgrade from J.P. Morgan, which knocked down its rating to neutral, and reduced its price target from $25 to $17. J.P. Morgan now sees the turnaround taking longer than expected due to increased uncertainty.
Including Friday's rout, shares of DXC are now down about 75% from their 52-week high.