Information technology and business process outsourcing services provider Computer Sciences Corp. (CSC) is scheduled to announce second-quarter results after the market closes on Wednesday. On average, 11 analysts polled by Thomson Reuters expect the company to earn $1.35 per share for the quarter with estimates ranging between $0.97 and $1.41 per share. Revenues are estimated to be $4.01 billion. Analysts' estimates typically exclude special items.
Credit Suisse said in an October 26 client note that the firm expects the company to report earnings of $1.38 per share on revenues of $3.98 billion. The firm also expects second-quarter bookings of $4.5 billion, up from $3.5 billion in the first quarter.
The Falls Church, Virginia-based company offers its services to the commercial and government markets. CSC has around 92,000 employees and its worldwide network supports 8,000 users in 90 locations around the world.
In the year-ago second quarter, the company reported net income of $75.8 million, or $0.43 per share, including a special pre-tax charge of $25.9 million related to the restructuring program announced in April 2006. Earnings per share, excluding the special item, were $0.54. The net earnings for the second quarter were also hurt by a higher than expected effective tax rate of 55.8% resulting from the adoption of FIN 48 and the discrete impact of statutory rate reductions in two foreign entities, which caused a valuation decline in certain deferred tax assets. Revenue for the second quarter was $4.02 billion.
On August 6, CSC said its first-quarter profit increased from last year, primarily on lower expenses. The company's net income attributable to common shareholders rose to $131 million or $0.85 per share from $121 million or $0.79 per share in the prior year quarter. First quarter revenue declined 12.2% to $3.9 billion from $4.4 billion in the same quarter last year. On a constant currency basis, revenue dropped 6.2%. Total costs and expenses decreased to $3.7 billion from $4.3 billion in the prior year quarter.
While announcing the first-quarter results, CSC also raised its fiscal year 2010 earnings outlook and reaffirmed its revenue forecast. For fiscal year 2010, CSC said it expects earnings of $4.80 to $5.00 per share, up from its prior estimate of $4.20 to $4.30 per share. Revenue is expected to be $16.0 billion to $16.5 billion for 2010. The company is likely to update this today.
Among recent contract wins, the company said last week that it signed a contract with defense contractor Raytheon Company (RTN) to provide a range of information technology support services. Financial terms of the deal were not disclosed. It would replace an expiring 10-year contract between the companies, and has a five-year base period with two one-year options. The contract runs through February 2015.
The company said on November 4 that it received a task order from the U.S. Agency for International Development to provide information technology infrastructure engineering support services. The task order, awarded to CSC during the company's second quarter of fiscal 2010, has a one-year base period and four one-year options with an estimated five-year contract value of $200 million.
CSC revealed in October that it is one of the seven companies awarded a blanket purchase agreement for information technology support from the U.S. Environmental Protection Agency. The agreement has a seven-year performance period and an estimated maximum total ceiling value of $955 million for all firms.
During the second quarter, CSC also received a contract from the U.S. Department of Education to support the agency's Education Resources Information Center. The new agreement has a one-year base period and four one-year options, bringing the estimated total five-year contract value to $29 million.
In October, the General Service Administration's Federal Systems Integration and Management Center awarded the company a task order to provide cyber training in support of the Defense Cyber Investigations Training Academy in Linthicum. The order has an estimated total five-year value of $85 million. CSC received a $162 million contract from NASA in September to provide aviation services.
CSC closed Tuesday's regular trade at $53.80, up $0.35 or 0.65%, on 782,552 shares. For the past year, the stock traded in the range of $23.93-$54.45.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.