DXC Technology slumps after downbeat FY25 forecast

DXC Technology

17/05/2024 09:47

** Shares of IT management firm DXC Technology  DXC.N  drop
21.8% to $15.55 premarket
    ** Co sees FY25 revenue in $12.67-$12.95 bln range vs
analysts' average estimate of $13.19 bln - LSEG data 
    ** Sees FY25 EPS in $2.50-3 range vs estimate of $3.06
    ** Q1 revenue and adj. EPS also forecast below expectations
on cautious client spending in high interest rate economy 
    ** Co's Q4 results, however, beat Wall Street estimates 
    ** Brokerage J.P.Morgan says stock's tolerance for another
restructuring affecting near-term free cash flow and pausing
share repurchases in FY25 low; cuts PT to $15 from $24
    ** RBC also cuts PT to $18 from $24
    ** Nine brokerages maintain a "hold" rating on co, four rate
it "sell" or lower with only one "buy"; median PT at $20 - LSEG
data 
    ** Stock down 13% YTD, as of last close 

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))