Computer Sciences Crushes Earnings Estimates

Computer Sciences (NYSE: CSC  ) reported earnings on Feb. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 28 (Q3), Computer Sciences met expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share grew.

Margins grew across the board.

Revenue details
Computer Sciences notched revenue of $3.78 billion. The 13 analysts polled by S&P Capital IQ hoped for revenue of $3.75 billion on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $3.76 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.77. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.62 per share. GAAP EPS were $3.27 for Q3 versus -$8.96 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 20.8%, 680 basis points better than the prior-year quarter. Operating margin was 6.3%, 760 basis points better than the prior-year quarter. Net margin was 13.5%, 5,040 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.91 billion. On the bottom line, the average EPS estimate is $0.85.

Next year's average estimate for revenue is $15.37 billion. The average EPS estimate is $2.55.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 246 members out of 290 rating the stock outperform, and 44 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Computer Sciences a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Computer Sciences is hold, with an average price target of $37.96.

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