NEW YORK (TheStreet) -- Shares of Computer Sciences (CSC) were falling 5.3% to $61.40 after-hours Monday after the IT services company missed analysts' estimates for revenue in the fiscal third quarter.
Computer Sciences said that revenue dropped 8.7% year over year to $2.95 billion for the fiscal third quarter, below analysts' estimates of $3.18 billion. The company reported earnings of $1.18 a share for the quarter, above analysts' estimates of $1.12 a share.
"We returned to top line growth in our public sector business and we expanded the operating margin through tight cost management and good contract performance," Computer Sciences President and CEO Mike Lawrie said. "We continue to see significant growth from our next-generation offerings. However, these contributions are not yet large enough to offset headwinds in our traditional commercial business."
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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 growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: CSC Ratings Report