Computer Sciences Beats

The company's revenue rises 8.6% from the year-ago quarter.
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Computer Sciences

(CSC)

reported fiscal first-quarter results Thursday that beat analyst expectations, and reiterated guidance for the full fiscal year.

Under generally accepted accounting principles, the El Segundo, Calif.-based information technology services company reported net income of $131.6 million, or 70 cents a share, in the first quarter ending July 1. That included $22.9 million from the gain on a sale of discontinued operations.

CSC earned $110.4 million, or 58 cents a share, a year ago.

Net earnings from continuing operations totaled 58 cents, up from 49 cents a share a year earlier. Analysts were expecting the company to bring in earnings per share of 55 cents, according to Thomson First Call.

CSC's revenue rose 8.6% to $3.58 billion from $3.3 billion a year earlier. That was slightly higher than the consensus estimate of analysts calling for $3.51 billion in sales.

Looking forward, CSC expects second-quarter revenue of $3.6 billion and earnings in the mid-to-upper 60-cent range. Analyst estimates last called for CSC to post $3.65 billion in revenue and 69 cents a share in earnings in the second quarter.

The company reiterated its previous outlook for fiscal 2006 calling for revenue ranging from $15 billion to $15.2 billion and earnings ranging from $3.20 to $3.30 a share.

Analysts were pegging 2006 sales at $15.05 billion and earnings at $3.24 a share for fiscal 2006.

Shares of CSC closed the regular session up 20 cents, or 0.4%, to $46.84; shares were flat at $46.83 in recent after-hours trading.