DXC Technology (NYSE:DXC) Announces Quarterly Earnings Results

Key Points

• DXC Technology beat quarterly expectations: The company reported adjusted EPS of $0.67 versus the $0.55 consensus estimate and revenue of $3.03 billion, ahead of the $2.98 billion forecast.
• Shares traded near their yearly high: DXC fell $0.98 to $15.11, compared with a 52-week range of $7.90 to $16.38. The company reported a 0.99% net margin and 15.60% return on equity.
• Analyst sentiment remains cautious: Seven analysts rate the stock Hold and two rate it Sell, resulting in a consensus “Reduce” rating and an average price target of $12.21.

DXC Technology (NYSE:DXC - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.55 by $0.12, FiscalAI reports. The firm had revenue of $3.03 billion for the quarter, compared to the consensus estimate of $2.98 billion. DXC Technology had a net margin of 0.99% and a return on equity of 15.60%.

DXC Technology Stock Performance

DXC traded down $0.98 on Thursday, hitting $15.11. The company had a trading volume of 4,965,606 shares, compared to its average volume of 3,831,416. The company's fifty day moving average price is $12.11 and its 200 day moving average price is $11.60. DXC Technology has a 1-year low of $7.90 and a 1-year high of $16.38. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.41 and a quick ratio of 1.41. The stock has a market cap of $2.41 billion, a price-to-earnings ratio of 21.59 and a beta of 0.79.

Analyst Ratings Changes

A number of brokerages have issued reports on DXC. Royal Bank Of Canada cut their price target on shares of DXC Technology from $16.00 to $14.00 and set a "sector perform" rating on the stock in a research note on Friday, July 31st. Weiss Ratings upgraded DXC Technology from a "sell (d)" rating to a "sell (d+)" rating in a research note on Tuesday, October 6th. Morgan Stanley set a $12.00 price objective on DXC Technology in a report on Monday, August 3rd. Stifel Nicolaus lowered their price objective on DXC Technology from $12.00 to $10.50 and set a "hold" rating for the company in a research note on Friday, July 31st. Finally, TD Cowen raised their price target on shares of DXC Technology from $10.00 to $12.00 and gave the company a "hold" rating in a research note on Monday, August 3rd. Seven equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average price target of $12.21.

DXC Technology Company Profile

DXC Technology NYSE: DXC is a global information technology services and solutions company that helps organizations modernize and manage their technology environments. Its services include consulting, application development and management, cloud migration and operations, cybersecurity, data and analytics, enterprise technology management, and workplace and end-user services.

The company serves businesses and government organizations across a range of industries, including financial services, healthcare, insurance, manufacturing, aerospace and defense, automotive, retail, and the public sector.

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