Information technology services provider Computer Sciences Corp. (CSC) Wednesday reported a profit for the fourth quarter, compared to a loss in the prior year, helped by lower costs. Further, the company lifted its full year 2014 earnings projection.
Net income attributable to CSC common stockholders was $281 million or $1.81 per share compared to a loss of $158 million or $1.02 per share last year. Income from continuing operations was $1.57 per share compared to a loss of $1.20 per share in the prior year.
The latest results included a tax planning benefit of $1.02 per share and a $0.24 per share gain on the sale of an Australian IT staffing business. The results also included settlement of a shareholder securities class action lawsuit of $0.24 per share and restructuring charges of $0.72 per share.
Adjusted earnings per share from continuing operations was $1.27. On average, 10 analysts polled by Thomson Reuters expected earnings of $0.99 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues declined to $3.70 billion from $3.99 billion. Analysts expected revenues of $3.86 billion.
Revenue from Managed Services Sector or MSS slid 4 percent in the quarter to $1.63 billion. The division signed $1.1 billion of new business during the quarter.
Business Solutions & Services or BSS revenue dropped 12 percent to $0.80 billion, primarily due to the sale of an Australian IT staffing business.
In the North American Public Sector or NPS segment, revenue declined 7 percent to $1.31 billion due to contracts that were winding down and the slow pace of new business awards. NPS awards of $0.8 billion declined from the previous year due mainly to delays in government procurement.
Total costs and expenses in the quarter declined to $3.59 billion from $4.17 billion due mainly to lower costs of services.
For the year, net income attributable to shareholders was $961 million compared to a loss of $4.24 billion last year. Annual revenues climbed to $14.99 billion from $15.36 billion.
Further, CSC said it raised its outlook for fiscal 2014 earnings per share from continuing operations to a range of $3.30 to $3.50. Earlier, the company was looking for earnings of around $3.30 per share. Analysts expect the company to report fiscal 2014 profit per share of $3.45.
Mike Lawrie, president and CEO, of the company, said, "For fiscal year 2014, our plans include continued cost takeout, investing in our people, expanding market coverage, pursuing delivery excellence and driving innovation with our clients."
CSC settled on Tuesday at $49.49.
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