Computer Sciences (NYSE: CSC) is expected to report Q4 earnings on May 15. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Computer Sciences's revenues will contract -6.4% and EPS will turn positive
The average estimate for revenue is $3.85 billion. On the bottom line, the average EPS estimate is $0.99.
Revenue details
Last quarter, Computer Sciences booked revenue of $3.78 billion. GAAP reported sales were 2.5% higher than the prior-year quarter's $3.69 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, non-GAAP EPS came in at $0.77. GAAP EPS were $3.27 for Q3 against -$8.96 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 20.8%, 720 basis points better than the prior-year quarter. Operating margin was 6.3%, 830 basis points better than the prior-year quarter. Net margin was 13.5%, much better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $15.27 billion. The average EPS estimate is $2.81.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 243 members out of 285 rating the stock outperform, and 42 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Computer Sciences a green thumbs-up, and nine 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 $37.96.
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