Why Shares of DXC Technology Crashed Today
Fool.com - Sat 10 Aug 05:53 GMT

The IT services provider adjusted its full-year outlook.

  The company beat analyst estimates for both revenue and earnings, but it slashed its full-year guidance.

  So what DXC reported first-quarter revenue of $4.89 billion, down 7.4% year over year and $30 million higher than the average analyst estimate.

  Revenue from the global business services segment fell 2.4% to $2.16 billion, while revenue from the global infrastructure services segment tumbled 11% to $2.73 billion.

  Non-GAAP (adjusted) earnings per share came in at $1.74, down from $1.93 in the prior-year period but $0.03 better than analysts were expecting.

  While total revenue slumped, digital revenue was up 35% year over year.

  Now what For the full year, DXC now expects revenue between $20.2 billion and $20.7 billion, non-GAAP EPS between $7.00 and $7.75, and adjusted free cash flow equivalent to 90% of non-GAAP net income.

  That revenue guidance range is $500 million below the company's previous guidance, and the non-GAAP EPS range was lowered by $0.75.