DXC reports fourth-quarter revenue on May 23
DXC Technology (DXC) announced its fiscal 2019 fourth-quarter earnings results (for the year that ended in May) on May 23. It reported revenue of $5.28 billion, a fall of 5.4% YoY (year-over-year). The company reported adjusted EPS of $2.19, 9.5% below the previous quarter’s EPS of $2.0.
Analysts had expected DXC to post revenue of $5.31 billion and EPS of $2.09 in the fourth quarter. While DXC missed analysts’ revenue estimates, it beat their earnings estimates, which sent its stock up over 4% in after-hours trading on May 23.
Fiscal 2019 metrics
DXC reported sales of $20.75 billion in fiscal 2019, a fall of 4.5% YoY (year-over-year). Its EPS in 2019 were $8.34 and rose 23.6% from $6.75 in fiscal 2018. The Global Business Services segment is DXC’s largest business. Its revenue fell 7.2% in the fourth quarter and 6.2% in fiscal 2019.
The Global Infrastructure Services segment saw a sales fall of 4.2% in the fourth quarter and a fall of 3.3% in fiscal 2019. DXC’s Digital Revenue segment was its fastest-growing business in the fourth quarter. It saw its sales rise 22.0% in the quarter and by 16.0% in fiscal 2019.
During DXC’s earnings call, CEO Mike Lawrie stated, “Digital growth continues to offset more of the decline in our traditional business. And sequentially, digital revenue in the fourth quarter more than offset the decline in the traditional business.”