DXC Technology forecasts first-quarter revenue below estimates (updated)

DXC Technology

16/05/2024 21:52

(Adds details from statement throughout)
       May 16 (Reuters) - IT management firm DXC Technology
 DXC.N  forecast first-quarter and full-year revenue below
estimates on Thursday as it anticipates cautious spending by
clients due to macroeconomic uncertainty, sending its shares
down 18%.
        Rising borrowing costs are driving most companies to
keep a tight leash on their IT spending.
  
        The company also generates sizeable revenue from outside
the United States, which makes it vulnerable to exchange rate
fluctuations.
  
        The performance of the company's global IT
infrastructure system segment was down 9% to $1.67 billion in
the quarter, hurt by revenue declines in cloud and IT
outsourcing offerings.
  
        The company, which counts London-listed Lloyds Banking
Group as its customer, now expects first-quarter revenue in the
range of $3.10 billion to $3.15 billion, below analysts' average
expectation of $3.30 billion, as per LSEG data. 
  
        DXC forecast full-year 2025 revenue in the range of
$12.67 billion to $12.95 billion, which is also below analysts'
average expectation of $13.19 billion. 
  
        For the fourth-quarter, DXC reported a 5.7% fall in
revenue to $3.39 billion, slightly above analysts' average
estimate of $3.37 billion.
  
        
  
        
  
    
    
    

 (Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
 ((Juby.Babu@thomsonreuters.com;))