Long-Term Outlook Sparks EDS

Updated from 5:05 p.m. EDT

EDS(EDS Quote), which preannounced stronger-than-expected second-quarter results and raised full-year guidance last week, said Wednesday that 2006 earnings would far surpass analyst expectations.

For the first time, the Plano, Texas, IT-outsourcing company gave "directional" 2006 pro forma EPS guidance, pegging the measure at $1 or more. That's far higher than the 66-cents-a-share consensus estimate gathered by Thomson First Call.

The forecast boosted EDS shares nearly 8% in recent after-hours trading to $22.93, after they gained 3.7% to close at $21.29 in regular trading. ...