This Day On The Street
Continue to site right-arrow
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!

CSC Reports Strong Q1 2014 Increase In Profitability

Stocks in this article: CSC

CSC (NYSE: CSC) today reported diluted earnings per share of $1.02 consisting of $0.91 from continuing operations and $0.11 from discontinued operations for the first quarter of 2014. During the quarter, CSC announced the sale of two businesses which are now included in discontinued operations. In the first quarter of 2013, CSC reported $0.26 of diluted earnings per share consisting of $0.10 from continuing operations and $0.16 from discontinued operations. Total revenue was $3.26 billion, a decline of 10% in constant currency when compared to $3.63 billion from the year ago period. However, on a more comparable basis, revenue declined by 6% in constant currency.

“We are encouraged with the pace of our turnaround. Our cost takeout actions are driving margin expansion and earnings growth,” said Mike Lawrie, president and CEO. “The company is beginning to pivot more towards growth and we are investing in offerings and partnerships that will enhance our differentiation and expand our market coverage. Based on our current progress, we are raising our target for EPS from continuing operations by 20 cents to $3.50 - $3.70.”

Financial Highlights

  • EPS from continuing operations of $0.91 compares with $0.10 in the year ago period.
  • Net income was $159 million for the first quarter, an increase of $117 million from net income of $42 million in the prior year.
  • Operating income was $304 million, an increase of $158 million as compared to $146 million for the first quarter of fiscal 2013. Operating income margin was 9.3%, an increase of 530 bps from 4.0% in the year ago period.
  • Earnings before interest and taxes (EBIT) was $241 million, an increase of $167 million as compared to $74 million for the first quarter of fiscal 2013. EBIT margin of 7.4% improved by 540 bps from 2.0% in the prior year.
  • Operating cash flow of $213 million in the quarter compares with the $221 million in the prior year.
  • Free cash flow of negative $9 million improved by $16 million when compared with negative $25 million for the year ago period.
  • Ending cash and cash equivalents were $1.93 billion as of June 28, 2013, an increase of $930 million over the prior year.

New Operating Model

As previously disclosed, CSC has implemented a new operating model to align the company’s leadership and assets with its strategy of leading the next generation of IT services and solutions. The new operating model resulted in a change to the Company's reportable segments for fiscal 2014 which are now: Global Business Services (GBS), Global Infrastructure Services (GIS), and the North American Public Sector (NPS).

1 of 14

Select the service that is right for you!

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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