NEW YORK (TheStreet) -- Computer Sciences (CSC) shares are flat at $63.98 in pre-market trading on Tuesday after the information technology company reached a $190 million settlement with the SEC after an accounting probe by the agency found irregularities on the company's books.
Computer Sciences will also have to adjust its financial statements for fiscal 2010-2012. It's net income for 2010 and 2011 will be reduced by $50 million and $3.69 billion, respectively, while net income for 2012 will be increased by $3.9 billion, according to a regulatory filing yesterday.
The company said that it will not admit or deny the commission's allegations.
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TheStreet Ratings team rates COMPUTER SCIENCES CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate COMPUTER SCIENCES CORP (CSC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."