Computer Sciences Corp. (CSC) Tuesday provided a financial guidance for the fourth quarter and full year 2012, which is expected to miss current Street expectations.
The company had earlier withdrawn and refused to review the guidance until discussions regarding a contract with the UK's National Health Service was completed. Nonetheless, last week the company announced that the parties had not reached an agreement.
The Falls Church, Virginia-based company now expects fourth-quarter loss in a range of $0.92 to $0.96 per share, and adjusted net income of $0.19 to $0.21 per share. Analysts polled by Thomson Reuters currently expect earnings of $0.97 per share for the quarter. Analysts' estimates typically exclude special items.
The company expects revenues of about $4.1 billion and new business awards of about $6 billion for the fourth quarter. Analysts currently estimate revenues of $4.11 billion for the quarter.
For the fiscal year 2012, the company expects loss in a range of $27.27 to $27.31 per share and adjusted income of $2.45 to $2.49 per share. Analysts currently expects earnings of $4.30 per share for the quarter.
Computer Sciences expects revenues of about $15.9 billion and new business awards of $19 billion for the full year 2012. Analysts currently estimate revenues of $16.00 billion for fiscal year 2012.
The information technology services provider had withdrawn its full-year outlook after the UK government failed to approve an amendment for a National Health Service Contract in late December 2011.
CSC was developing a patient records system as part of the UK NHS IT program and for which it invested $1.5 billion. However, CSC was informed later that neither the MOU nor the contract amendment would be approved by the government. The company had taken a write-down of about $1.49 billion or $9.93 per share in the third quarter related to the NHS contract.
The company at that time said it was not in a position to reasonably estimate fiscal year 2012 financial performance.
Later in early March, the company revealed that it signed a non-binding letter of intent with the NHS that provided a framework upon which the contract could continue. The parties targeted the completion of a binding interim agreement on or before March 31, 2012.
CSC is closed Tuesday's trading on the NYSE at $28.18, down 1.54%, trading volume for the day was 1.5 million shares. In after-hours trade, the stock further lost 1.35%.
by RTT Staff Writer
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