The 10-second takeaway
For the quarter ended March 30 (Q4), Computer Sciences met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Computer Sciences reported revenue of $4.11 billion. The 10 analysts polled by S&P Capital IQ expected net sales of $4.09 billion on the same basis. GAAP reported sales were 2.1% lower than the prior-year quarter's $4.20 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 -$0.14. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.20 per share. GAAP EPS were -$1.02 for Q4 versus $1.09 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 14.4%, 500 basis points worse than the prior-year quarter. Operating margin was 0.4%, 690 basis points worse than the prior-year quarter. Net margin was -3.8%, 790 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.89 billion. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $15.73 billion. The average EPS estimate is $2.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 265 members rating the stock outperform and 39 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give Computer Sciences a green thumbs-up, and 12 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 $29.18.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.