Sales for the quarter ending April 2 surged past expectations, it reported yesterday, though profit growth wasn’t quite so robust.
Total sales were $4bn, up 29.9% on the year, yielding net income of $190.6m, a 17.1% rise on the year. For the full year, sales were up 30.2% to $14.8bn, while full year net income was up 18% to $519.4m.
The fourth quarter sales figure was well above the $3.75bn analysts had expected from CSC, though at $1.01, earnings per share were only slightly higher than the $1.00 forecast.
US federal business accounted for the biggest chunk of growth, up 65% overall. Total US federal business accounted for 41% of overall revenues, with the Defense Department alone accounting for a quarter of CSC’s total revenues.
Growth in its commercial business was less stratospheric. Overall commercial business grew 13.2% to $2.36bn. US commercial business accounted for 24% of total revenues, while Europe accounted for 27%, with other accounting for 8%.
CSC was at pains to point out that the surging government figures reflected the impact of its Dyncorp acquisition. CSC is predicting more measured growth for the future. In the first quarter, it expects revenue growth of 4% to 6%, with earnings per share of $0.55 to $0.59. Full year sales should be up 8% to 10%, with full year earnings per share of $3.10 to $3.20.
