DXC stock sinks after earnings as sales, guidance disappoint

DXC Technology Co. DXC shares fell more than 5% in after-hours trading Thursday, after the company reported fourth-quarter sales and fiscal-year guidance that came in lower than Wall Street expected. DXC reported a fiscal fourth-quarter loss $758 million, or $3.38 a share, on sales of $3.59 billion, down from $4.01 billion a year ago. After adjusting for restructuring, pension and other costs, the company reported earnings of $1.02 a share, up from 84 cents a share a year ago. Analysts on average were expecting adjusted earnings of $1.03 a share on sales of $3.62 billion, according to FactSet. For the new fiscal year, executives guided for adjusted earnings of $3.80 to $4.05 a share on sales of $14.4 billion to $14.55 billion. Analysts on average were expecting annual adjusted earnings of $3.97 a share on sales of $14.58 billion, according to FactSet. DXC also announced that Chief Financial Officer Ken Sharp will leave the company for personal reasons, and be replaced by Rob Del Bene. The company also revealed a fresh $1 billion share-repurchase program. DXC shares have declined 18.2% in the past year, as the S&P 500 index SPX has gained 6%.

-Jeremy C. Owens

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05-18-23 1654ET

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