DXC Technology (DXC) To Report Pre-Merger Q4 Results Of CSC
Zacks Investment Research | May 18, 2017 09:46PM ET
DXC Technology Company (NYSE:DXC) announced that it will release the fourth-quarter fiscal 2017 results of Computer Sciences Corporation (CSC) on May 25. Notably, DXC Technology is a result of merger between Computer Sciences and Enterprise Services Division of Hewlett Packard Enterprise (NYSE:HPE) , which was closed on Apr 1, 2017.
Last quarter, CSC posted a positive earnings surprise of 14.1%. Notably, the stock has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 16.6%.
Let us see how things are shaping up for the company’s last financial announcement.
Factors to Consider
The merger with Hewlett Packard Enterprise company’s Enterprise Services business has opened up new avenues of growth and will help the combined entity to become a leading player in the IT services domain. However, we believe that the benefits of the merger will come over the long run, as CSC’s fiscal fourth-quarter results are likely to bear the effect of the integration of the acquired businesses.
Moreover, costs associated with the merger and other acquisitions, such as UXC and Xchanging, are likely to undermine the company’s bottom-line results in the to-be-reported quarter.
Apart from this, increased competition, delay in government’s order renewal process and constricted federal spending may adversely affect its results in the fiscal fourth quarter.
Nonetheless, the company’s traction in the cloud and partnerships with the likes of HCL, AT&T (NYSE:T), VMware and Microsoft (NASDAQ:MSFT) are expected to positively impact its overall fiscal fourth-quarter results.
DXC Technology Company. Price and EPS Surprise
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