IT services provider DXC Technology (NYSE: DXC) will be announcing earnings results this Thursday after market close. Here’s what investors should know.
DXC met analysts’ revenue expectations last quarter, reporting revenues of $3.16 billion, down 2.5% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ EPS guidance for next quarter 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 be flat year on year at $3.20 billion, improving from the 5.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.83 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 & other tech segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Accenture delivered year-on-year revenue growth of 6%, beating analysts’ expectations by 1.2%, and Applied Digital reported revenues up 98.2%, topping estimates by 14.8%. Accenture’s stock price was unchanged after the resultswhile Applied Digital was up 8.1%.
Read our full analysis of Accenture’s results here and Applied Digital’s results here.
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 2.2% on average over the last month. DXC’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $14.63 (compared to the current share price of $14.75).
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