Computer Sciences Jumps on Strong Results, Guidance

The computer services giant posts a 30% rise in revenue, record earnings and gives a bullish outlook.
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Updated from May 17

Aided by a weak dollar and strong government sales,

Computer Sciences

(CSC)

boosted fourth-quarter revenue 30% and posted record quarterly earnings, the El Segundo, Calif., company announced after the closing bell on Monday.

The report included strong guidance, and that gave Wall Street reason to cheer after Monday's wretched session. Shares of Computer Sciences were recently up $4.12, or 10.6%, to $43.15.

The company earned a profit of $190.6 million, or $1.01 per share, in the quarter ended April 2, on $4 billion in sales. Analysts polled by Thomson First Call were expecting a $1 per share profit on sales of $3.75 billion. The company earned $162.7 million, or 93 cents a diluted share, in the same quarter last year.

The falling dollar added 5% to the top line.

For the full fiscal year, the company earned a profit of $519.4 million, or $2.75 cents per diluted share, including an after-tax charge of $14.6 million. Sales were up 30.2% to $14.8 billion.

Looking forward, CEO Van B. Honeycutt said he expects revenue in the first quarter to rise 4% to 6%, well above Wall Street's growth expectations of about 0.6%. Earnings per share will range from 55 cents to 59 cents; Wall Street was expecting 56 cents.

Computer Sciences offers an array of outsourced information services including application development, systems analysts, network operations and data center management to clients in the global commercial and government markets.