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Wednesday, May 15
After closing near its 52-week high yesterday, Computer Sciences (CSC -10.3%) has plunged...
After closing near its 52-week high yesterday, Computer Sciences (CSC -10.3%) has plunged following its mixed FQ4 report. On its earnings call, CSC guided for revenue to be flat to slightly down (consensus is at -1%), and for EPS of $3.30-$3.50 (consensus is $3.45). $500M in free cash flow is expected, down from FY13's $764M, and book-to-bill will be around 1.0 or below in fiscal 1H before a 2H pickup. CSC now expects $1.3B in cost savings from its restructuring efforts, above a prior target of $1B-$1.2B. FQ4 managed services sales -4% Y/Y, business solutions/services sales -12% Y/Y (hurt by Australian sale), North American public sector -7% (slow contract activity). $228M in buybacks took place. (PR)