Computer Sciences posts drop in fiscal 2Q profit

AP News
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Posted: Nov 11, 2009 5:00 PM

Information technology services provider Computer Sciences Corp. said Wednesday its fiscal second quarter profit fell more than 50 percent from last year when it reaped a large tax benefit, but still beat Wall Street's forecast by 5 cents.

For the three months ended Oct. 3, the company earned $221 million, or $1.40 per share, versus $453 million, or $2.95 per share, in the prior-year period. Last year's results included a tax benefit of $267 million, or $2.27 a share.

Revenue fell nearly 5 percent to $4.04 billion from $4.24 billion a year earlier.

Analysts, on average, were expecting a profit of $1.35 per share with revenue of $4.01 billion.

Looking ahead, CSC backed its fiscal 2010 earnings guidance range of $4.80 and $5 per share with revenue between $16 billion and $16.5 billion. Analysts are looking for a profit of $4.94 per share for the full year with revenue of $16.28 billion.

During the quarter, CSC received a total of $4.58 billion in new business awards. The company expects to generate up to $18 billion in new business for the fiscal year.

In after-hours trading, shares fell $1.54 to $53.76, after adding 80 cents to close at $54.60 in the regular session.