EDS a Little Light on Revenue
Computer services firm
Electronic Data Systems
(EDS)
reported first-quarter earnings that beat analysts' forecasts by a penny, but revenue for the period fell short of estimates.
EDS earned $354 million, or 72 cents a share, in the first quarter, up from $301 million, or 63 cents a share, last year. Analysts were expecting earnings of 71 cents in the latest quarter. The year-ago results exclude a $178 million gain and $33 million of goodwill amortization.
Total sales rose to $5.34 billion from $4.99 billion a year ago, but below estimates for a top line of $5.70 billion.
"Even in an economy where corporate capital spending is soft, our value proposition drove sales essentially equal to last year's record quarter," Dick Brown, chairman and chief executive of EDS, said in a statement. Brown also said he was encouraged by the firm's $7.2 billion in contract signings in the quarter.
EDS' operating margins improved to 11.3%, compared to 8.9% in the same quarter a year ago.
Ahead of its earnings release, EDS ended down $1.90, or 3.6%, at $51.30. After the close, the stock recovered 45 cents to $51.75 on the Instinet platform.
