DXC Technology (DXC) Shares Gap Up on Earnings Beat

DXC Technology Co (NYSE:DXC) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $50.85, but opened at $51.98. DXC Technology shares last traded at $53.08, with a volume of 7864462 shares.

The company reported $2.19 earnings per share for the quarter, topping the consensus estimate of $2.07 by $0.12. The company had revenue of $5.28 billion during the quarter, compared to the consensus estimate of $5.30 billion. DXC Technology had a return on equity of 19.78% and a net margin of 7.09%. DXC Technology’s revenue was down 5.4% compared to the same quarter last year. During the same quarter last year, the business posted $2.28 earnings per share.

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 16th. Shareholders of record on Wednesday, June 5th will be given a dividend of $0.21 per share. This is an increase from DXC Technology’s previous quarterly dividend of $0.19. The ex-dividend date is Tuesday, June 4th. This represents a $0.84 annualized dividend and a yield of 1.58%. DXC Technology’s dividend payout ratio (DPR) is presently 9.57%.

Several equities analysts have weighed in on DXC shares. SunTrust Banks raised their price target on DXC Technology to $72.00 and gave the stock a “hold” rating in a research report on Monday, February 11th. Goldman Sachs Group downgraded DXC Technology from a “conviction-buy” rating to a “buy” rating in a research report on Monday, April 22nd. Zacks Investment Research downgraded DXC Technology from a “buy” rating to a “hold” rating in a research report on Wednesday. KeyCorp dropped their price target on DXC Technology from $97.00 to $88.00 and set an “overweight” rating for the company in a research report on Monday, May 20th. Finally, BMO Capital Markets dropped their price target on DXC Technology from $88.00 to $70.00 and set an “outperform” rating for the company in a research report on Tuesday, May 21st. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and ten have issued a buy rating to the company’s stock. DXC Technology presently has a consensus rating of “Buy” and a consensus target price of $82.33.

Several hedge funds have recently bought and sold shares of the company. Clearbridge Investments LLC boosted its holdings in shares of DXC Technology by 250,137.6% during the first quarter. Clearbridge Investments LLC now owns 352,835 shares of the company’s stock worth $22,691,000 after purchasing an additional 352,694 shares during the last quarter. Accident Compensation Corp boosted its holdings in shares of DXC Technology by 52.6% during the first quarter. Accident Compensation Corp now owns 100,950 shares of the company’s stock worth $6,492,000 after purchasing an additional 34,810 shares during the last quarter. Cerebellum GP LLC acquired a new stake in shares of DXC Technology during the first quarter worth $123,000. Allstate Corp boosted its holdings in shares of DXC Technology by 3.6% during the first quarter. Allstate Corp now owns 25,132 shares of the company’s stock worth $1,616,000 after purchasing an additional 876 shares during the last quarter. Finally, Columbia Asset Management acquired a new stake in shares of DXC Technology during the first quarter worth $114,000. Institutional investors and hedge funds own 83.74% of the company’s stock.

The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.53. The firm has a market capitalization of $14.24 billion, a PE ratio of 6.69, a price-to-earnings-growth ratio of 0.91 and a beta of 1.51.

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About DXC Technology (NYSE:DXC)

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates through three segments: Global Business Services (GBS), Global Infrastructure Services (GIS), and United States Public Sector (USPS).

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