Computer Sciences Corporation
It's been a mixed year for Computer Sciences Corporation (CSC - Get Report). The $4 billion IT services firm is up on the year, but it's seen a large decline in share prices since the stock peaked in February. This morning, CSC reported a first-quarter earnings beat and has gained over 15% so far on the news.
Einhorn and company certainly saw additional upside in CSC. The firm added the position to its portfolio at the start of the year, picking up 2.4 million shares worth almost $72 million at last count.CSC is involved in everything from consulting to systems integration and business outsourcing; if it's related to enterprise IT, it's probably part of CSC's service offerings. The firm is also a core contractor of IT services to the Federal Government, a lucrative business that others (especially defense contractors) are vying for right now. >>5 Hated Stocks Set to Soar on Earnings While that increased competition over nearly a third of CSC's revenue stream will pose some challenges, the firm's entrenched position in the IT contracting space should give it an edge over rivals who are only just now starting their IT contracting arms. Meanwhile, CSC's commercial business is starting to catch some tailwinds as enterprise IT spending ramps back up. Pipeline bookings of around $14 billion should help to smooth out the economic hiccups that are happening all around right now.