Vous pourriez penser que en reportant (les mauvaises langues diront colportant) un tel article, je tire sur l’ambulance. Que néni. C’est le contraire et vous le découvrirez au fil de cette introduction.
Je rappelle que DXC est le deuxième acteur mondial de l’infogérance avec 14Md€ de CA, derrière IBM-Kyndryl avec 19Md€ de CA. Leurs résultats sont donc à scruter régulièrement car ils donnent la tendance mondiale de l’infogérance.
Les objectifs T2 sont manqués et les prévions du T3 revues significativement à la baisse lié à la macro. Mais il ne s’agit pas de jeter le bébé avec l’eau du bain, DXC qui était la proie de Meunier en 2021 est toujours solidement bénéficiaire et TFCo réverait d’avoir un compte d’exploitation similaire. En introduction-conclusion des ses deux articles en un, du site d’analyste ZACKS et et BARRON’s, l’infogérance ralentit, les marges sont sous pression, mais DXC dégage toujours un RN conséquent de 550M€ prévus sur 2023 et un FCF de 700M€. Cela fait un taux de RN/CA de 4%, la ou la MOP De TFCo est de 2.6% et pour passer de le MOP au ROP et au RN, beaucoup de % part en fumée.
C’est donc à la fois un article de prudence, mais pour dire que ce que rachète Kretinsky est tout sauf un cadavre !!!
DXC Technology Stock Sinks as Analysts Say Progress Is ‘Reversing’ (BARRON’S)
DXC Technology shares were tumbling on a slew of downgrades from Wall Street firms, a day after delivering a disappointing earnings report.
The barrage of bad news was weighing on the information technology consulting firm in Thursday morning trading, sending shares down 28% to $19.57, which would mark their lowest close since Nov. 9, 2020, when they closed at $19.54, according to Dow Jones Market Data. The stock was also the leading decliner in the S&P 500.
Analysts at TD Cowen downgraded shares of DXC (ticker: DXC) to Market Perform from Outperform in a Thursday report, trimmed their price target to $25 from $34, and reduced estimates.
Over the last few years, the company has made improvements in different segments of the business, but “spotty fundamental performance has persisted,” analysts wrote. Further, disappointing first-quarter results and a guidance slash make it difficult to support their thesis, they explained, which was built on revenue growth and other positive strides.
Analysts at Deutsche Bank struck a similar tone in a Thursday report, in which they downgraded shares to Hold from Buy and lowered their price target to $23 from $35. In March 2021, they upgraded shares to Buy, “on a turnaround story” with Chief Executive Officer Mike Salvino at the helm. However, since then, though improvements have been made in margins and free cash flow, among other areas, “progress has stalled and is now reversing,” Deutsche analysts wrote.
The CEO remains optimistic about the road ahead, analysts wrote, “but after several setbacks, we have lost confidence that the transformation journey is leading anywhere but further fits and starts.”
On Wednesday, DXC reported first-quarter adjusted earnings a share of 63 cents, below the 82 cents a share analysts had forecast. It posted revenue that fell from a year ago, citing a slowdown in client purchases “that are, in the short term, discretionary,” which include the resale of IT equipment and services project work, according to the release. DXC also slashed full-year guidance, citing a challenging economic environment.
A majority of analysts are on the sidelines of DXC, with 73% rating shares as Neutral, 13% as Buy, and 13% as Sell, according to FactSet.
Write to Emily Dattilo at email@example.com
Deuxième article de : ZACKS
DXC Technology Company DXC shares plunged 14.7% in Wednesday’s extended trading session after the company reported lower-than-expected first-quarter results and lowered revenue guidance for the full-fiscal 2024. The IT services and consulting company reported first-quarter non-GAAP earnings of 63 cents per share, which came in way lower than the Zacks Consensus Estimate of 82 cents.
The bottom line decreased 16% from the prior-year quarter’s earnings of 75 cents per share. The year-over-year decline was primarily due to lower revenues and higher-than-expected tax expenses, partially offset by a lower share count.
DXC reported revenues of $3.45 billion, which fell short of the consensus mark of $3.56 billion and declined 7% year over year. The top line was negatively impacted by a slowdown in client expenditures. The company noted that several customers have either stopped or pushed their orders in the second half of fiscal 2024 amid the current uncertain macroeconomic environment.
DXC Technology Company. Price, Consensus and EPS Surprise
DXC Technology Company. price-consensus-eps-surprise-chart | DXC Technology Company. Quote
DXC’s bookings in the fiscal first quarter were $3.1 billion, reflecting a book-to-bill ratio of 0.89. The trailing 12-month book-to-bill ratio for the company was 1.03 at the first-quarter fiscal 2024-end. Our estimate for bookings and the book-to-bill ratio was pegged at $3.8 billion and 1.06, respectively.
However, on an organic basis, the division’s revenues improved 3.3% year over year. The upside was primarily aided by the strong performance of Analytics & Engineering and Insurance Software & BPS offerings, where revenues increased 8.8% and 5.1%, respectively, on an organic basis. However, the GBS segment’s Applications offerings registered a year-over-year organic revenue decline of 0.7%.
Global Infrastructure Services (“GIS”) revenues were $1.74 billion in the fiscal first quarter, down 10.6% year over year. Our estimate for the GIS segment’s first-quarter revenues was pegged at $1.85 billion.
On an organic basis, the division’s revenues decreased 9.9% year over year, which was higher than management’s expectations. The GIS segment’s performance was negatively impacted by a slowdown in customer expenditures, mainly in the resale of IT equipment, such as PCs, networking gear and servers and project work.
Under the GIS division, revenues from Cloud Infrastructure & ITO and Modern Workplace offerings declined 12.7% and 5%, respectively, on an organic basis. However, it registered 6.8% year-over-year organic revenue growth at the Security offering.
The company’s adjusted operating income declined to $224 million in the first quarter from $259 million in the year-ago quarter. The adjusted operating margin contracted to 6.5% from 7%.
Balance Sheet and Cash Flow
DXC exited the fiscal first quarter with $1.58 billion in cash and cash equivalents compared with the $1.86 billion witnessed in the previous quarter. The long-term debt balance (net of current maturities) remained flat at $3.9 billion as of Jun 30, 2023 compared with the previous quarter.
In the first quarter, DXC generated operating cash flow of $127 million and had a negative free cash flow of $75 million. During the quarter, it repurchased 11 million shares for a total consideration of $280 million. The company stated that it is on track to complete the $1 billion share repurchase program in fiscal 2024. DXC had initiated the $1 billion share buyback program in April 2024.
DXC lowered its guidance for the full-fiscal 2024. For fiscal 2024, DXC now estimates revenues in the band of $13.88-$14.03 billion, down from its previous forecast in the range of $14.40-$14.55 billion. It now projects the adjusted EBIT margin for the fiscal in the range of 7%-7.5% instead of 8%-8.5% anticipated previously. The company also lowered its adjusted EPS forecast to the $3.15-$3.40 range from the $3.80-$4.05 range projected earlier.
DXC also initiated guidance for the second quarter. For the quarter, the company anticipates revenues between $3.43 billion and $3.46 billion. The adjusted EBIT margin is expected in the range of 6.5%-7%. DXC projects adjusted earnings between 65 cents and 70 cents per share for the second quarter.
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