Computer Sciences (CSC) Q4 Earnings: Will It Disappoint?
Zacks Investment Research | May 19, 2016 09:45PM ET
Computer Sciences Corporation (NYSE:CSC) is set to report fourth-quarter fiscal 2016 results on May 24. Last quarter, the company posted a positive earnings surprise of 2.9%. Let's see how things are shaping up for this announcement.
Factors at Play
Computer Sciences Corporation is one of the leading players in the information technology services industry. The company reported mixed third-quarter results wherein the bottom line beat the Zacks Consensus Estimate but the top line missed the same.
We believe that despite the company’s revenues being down on a year-over-year basis, the shift toward higher margin offerings will be beneficial over the long run. The company’s traction in the cloud and partnerships with HCL, AT&T (NYSE:T) , VMware and Microsoft (NASDAQ:MSFT) are expected to drive growth, going forward.
Moreover, the company’s continuous share buybacks and dividend payments are expected to support earnings and boost investors’ confidence.
However, the market is becoming competitive with companies like CACI International Inc. and Accenture making their presence felt. Delay in the government’s order renewal process and constricted federal spending are the near-term headwinds.
Earnings Whispers
Our proven model does not conclusively show that Computer Sciences will beat earnings estimates this quarter. This is because a stock needs to have both a positive Original post
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