This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

EDS' Profit Grows

SAN FRANCISCO -- Electronic Data Systems (EDS) beat second-quarter earnings expectations Monday, but sluggishness in the U.S. was felt on the company's top line.

The Plano, Texas, services company reported revenue rose a mere 3% to $5.62 billion, from $5.45 billion in the same quarter of last year. Analysts were expecting a top line of $5.71 billion, according to Thomson Reuters.

Net income grew 16% to $160 million, or 31 cents a share, from $138 million, or 26 cents a share, in the same period of 2007.

Excluding special items, EPS was 33 cents. Analysts were looking for 26 cents.

Shares were up 10 cents to $24.79 in extended trading.

The outsourcing firm competes with technology services providers IBM (IBM) and Accenture (ACN).

EDS is being acquired by Hewlett-Packard (HPQ) for $13.9 billion, the companies announced May 13. The deal will bring H-P more fully into competition with IBM, where the companies already vie for market share in delivering hardware and software.

The deal has been approved by regulators. Shareholders will vote on the merger July 31.

EDS issued no guidance nor held a conference call Tuesday due to the pending acquisition.

Following first-quarter trends, revenue was down 6% year over year in the Americas and up 11% in the Asia-Pacific region.

The company signed $5.4 billion in contracts during the quarter, up 27% year over year. Signings were particularly strong in Europe and the Middle East.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs