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Computer Sciences Beat on Top, Bottom Line

TSC Staff

Third-quarter profit surged at Computer Sciences(CSC Quote) on higher revenue, with both beating Wall Street estimates.

Computer Sciences said after the bell Tuesday that net income for the quarter ended Dec. 31 rose to $157.5 million, or 82 cents a share, from $128.4 million, or 68 cents a share, a year earlier.

A Thomson First Call survey of analysts had expected the company to post earnings of 80 cents a share in the latest quarter.

Revenue from continuing operations rose 5.6% to $3.52 billion from $3.33 billion a year ago. Including discontinued operations, third-quarter revenue was $3.99 billion, up from $3.62 billion a year ago.

Third-quarter revenue from continuing and discontinued operations of $3.99 billion beat the Thomson First Call estimates of $3.96 billion.

Shares of CSC were off $2.27, or 4.4%, to $49.73 Wednesday.

The company said global commercial revenue rose 11.1% (about 6% in constant currency) to $2.37 billion from $2.14 billion in the year-ago quarter. U.S. commercial revenue rose nearly 11% to $993.8 million.

European revenue rose 14.6% (about 5% in constant currency) to $1.07 billion from $933.2 million in last year's third quarter. Global commercial and European revenue was the beneficiary of meaningful recent IT services engagements and favorable currency exchange-rate movements, the company said.