IT services provider DXC Technology (NYSE: DXC) will be announcing earnings results this Thursday afternoon. Here’s what investors should know.
DXC beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $3.16 billion, down 2.4% year on year. It was a strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is DXC a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting DXC’s revenue to decline 2.1% year on year to $3.17 billion, improving from the 5.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.70 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DXC has missed Wall Street’s revenue estimates twice over the last two years.
Looking at DXC’s peers in the it services & consulting segment, some have already reported their Q3 results, giving us a hint as to what we can expect. IBM delivered year-on-year revenue growth of 9.1%, beating analysts’ expectations by 1.4%, and ASGN reported a revenue decline of 1.9%, topping estimates by 0.7%. IBM traded down 1.1% following the results while ASGN was also down 8%.
Read our full analysis of IBM’s results here and ASGN’s results here.
Investors in the it services & consulting segment have had steady hands going into earnings, with share prices flat over the last month. DXC is down 2.7% during the same time and is heading into earnings with an average analyst price target of $15 (compared to the current share price of $13.26).
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