CSC Profit Tops View - Update

(RTTNews) - IT services provider Computer Sciences Corp (CSC), on Tuesday reported a profit for the third quarter that also trumped estimates, helped largely by lower operating costs that offset 10 percent drop in revenues.

Commenting on the results Mike Lawrie said, "In the third quarter, CSC successfully completed its separation into two industry-leading pure-plays, while delivering margin improvement and earnings growth through disciplined cost management."

In November, CSRA Inc. (CSRA), the U.S. public sector business of Computer Sciences, completed its separation from parent company CSC.

Falls Church, Virginia-based CSC reported third-quarter net income of $43 million or $0.30 per share, compared with a loss of $314 million or $2.19 per share last year.

Adjusted earnings improved to $0.71 per share from $0.61 per share last year. On average, 12 analysts polled by Thomson Reuters estimated earnings of $0.69 per share for the quarter. Analysts' estimates typically exclude special items.

CSC, which is reporting its first quarterly results after splitting into two companies, said its third-quarter revenues dropped 10.2 percent to $1.75 billion from $1.95 billion last year.

Total costs and expenses for the quarter dropped $1.67 billion from $2.34 billion last year.

CSC closed Tuesday's trading at $30.80, up $0.10 or 0.33%, on the NYSE.