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What: Technology contractor Computer Sciences Corporation
So what: Computer Sciences also projected $1 billion in cost savings over the next year and a half. Its free cash flow losses narrowed to $25 million, a nice improvement over the year-ago quarter's hemorrhaging of $378 million in cash. Expectations for the upcoming quarter are now $0.42 in EPS. Company leadership is attempting to aggressively rehabilitate the money-losing company, which will take some time.
Now what: Computer Sciences has a nice dividend yield, at 3.2% after its big rise, but it has had to fund itself with significant debt offerings over the past few years to keep itself afloat. Both revenue and net income declined from the year-ago quarter, particularly net income, which stood at $1.17 per share last year. Today's pop brings Computer Sciences back to a roughly flat performance for the 52-week period, but it's got a ways to go before it looks like a good bargain.
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Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more news and insights. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.