So, where are companies turning for outsourcing IT work then? Well, there's also Accenture
I'm not making that up. I worked with CSC programmers for years as an analyst in the insurance industry. Most were none too crazy about meetings, but when some extraneous machine language code reared its ugly head, they usually had someone who could get down to the ones and zeros.
And CSC has more than just eccentricity going for it, having done the best job among its competition of repositioning itself in the face of an industry slump. The result has been new contracts out the ying yang, or $17.2 billion in "major" awards in the past 12 months, to be more precise. That's 50% more than its previous record. And its purchase last year of Dyncorp, a defense contractor that goes way beyond IT, has contributed significantly to a 65% increase in contracts from the government.
The end result was a strong fiscal fourth-quarter earnings report that sent the stock up 8%. Revenue rose 30% to $4 billion for the quarter, which even on a constant currency basis, was still up 24%. And net income was $190.6 million, or $1.01 per share, compared to $162.7 million, or $0.93 per share, a year earlier. Even after today's run, I still see CSC as a stock to buy and hold.
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Fool contributor Mark Mahorney doesn't own shares of any companies mentioned.