DXC Technology forecasts Q2 revenue above estimates on demand for cloud services

DXC Technology

08/08/2024 23:18

Aug 8 (Reuters) - DXC Technology  DXC.N  forecast
second-quarter revenue above Wall Street estimates on Thursday,
driven by steady demand for its cloud-based services from
businesses looking to incorporate AI features.
     Shares of the Tysons, Virginia-based company rose 7% in
extended trading after DXC also raised its annual forecast for
revenue. 
    DXC now expects 2025 revenue in the range of $12.74 billion
to $13.02 billion from its prior projection of $12.67 billion to
$12.95 billion. Analysts on average expect revenue of $12.8
billion, as per LSEG data.
    DXC projected second-quarter revenue in the range of $3.19
billion and $3.22 billion, compared with analysts' expectations
of $3.19 billion. 
    For the first quarter, DXC reported revenue of $3.24
billion, beating analysts' estimate of $3.14 billion. 
    The company's adjusted profit came in at 74 cents per share
in the quarter, compared with 63 cents a year ago.
    Buyout firm Apollo Global  APO.N  and Kyndryl Holdings
 KD.N  are in talks about a joint bid for DXC, Reuters had
exclusively reported in June. The companies have discussed an
offer of between $22 and $25 per DXC share.
   

 (Reporting by Juby Babu in Mexico City; Editing by Mohammed
Safi Shamsi)
 ((Juby.Babu@thomsonreuters.com;))