logo
Share SHARE
FONT-SIZE Plus   Neg

CSC Details Weak Q4, FY Outlook; NHS Issue Continues

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The company had earlier withdrawn and refused to review the guidance until discussions regarding a contract with the UK's National Health Service was completed.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The information technology services provider had withdrawn its full-year outlook after the UK government failed to approve an amendment for a National Health Service Contract in late December 2011.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

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Simple, uncluttered, colorful and friendly. That's how Google describes its new logo. The new typeface is sans-serif and without any shadow or embossing, unlike its earlier logos. It has given blue, red, yellow and green to its letters. The "e" is slightly tilted and stylized. On its browser tabs, it has replaced the lower case blue colored "g" with an upper case "G" in four colors. H&R Block reported a smaller loss for the first quarter, driven by a four percent increase in revenues, partly offset by foreign currency fluctuations. The company announced a $3.5 billion stock buyback, and its shares gained 7% in after-hours trade... About nine-tenths of the world's sea birds are likely to have consumed pieces of plastic which continue to remain in their guts, a study shows.
comments powered by Disqus
RELATED NEWS
Trade CSC now with 
Follow RTT