Why Is DXC Technology (DXC) Stock Down 24% Today?


  • DXC Technology (DXC) stock is down on Friday alongside its latest earnings report.
  • That’s due to weak guidance for its upcoming quarter and fiscal year.
  • This is despite it beating out estimates for the current quarter.
DXC Stock - Why Is DXC Technology (DXC) Stock Down 24% Today?

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DXC Technology (NYSE:DXC) stock is down on Friday following the release of the information technology company’s earnings report for the fiscal fourth quarter of 2024.

The bad news for DXC stock starts with its fiscal Q1 2025 guidance. That includes adjusted EPS ranging from 55 cents to 60 cents alongside revenue of $3.1 billion to $3.15 billion. Both of these would miss Wall Street’s estimates of 76 cents per share and revenue of $3.3 billion.

Things aren’t looking much better for the full fiscal year of 2025. DXC Technology’s guidance has adjusted EPS coming in between $2.50 and $3 with revenue ranging from $12.67 billion to $12.95 billion. Yet again, this would miss analysts’ estimates of $3.02 per share and $13.65 billion in revenue.

DXC Stock Q4 Results

That outlook is dragging down an otherwise solid earnings report for DXC Technology. The company’s adjusted EPS of 97 cents beat out Wall Street’s estimate of 83 cents. However, it was down year-over-year from $1.02 per share.

The company also reported revenue of $3.39 billion for the quarter. That’s another beat next to analysts’ estimate of $3.37 billion. Even so, it is down 5.7% from the $3.59 billion reported in the same period of the year prior.

DXC stock is down 23.8% as of Friday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/why-is-dxc-technology-dxc-stock-down-24-today/.

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