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DXC Technology Co. shares have stumbled to a 52-week low, with the stock price touching $14.78, signaling a rough period for the IT services company. With a market capitalization of $2.69 billion and an EV/EBITDA ratio of 4.1x, InvestingPro analysis suggests the stock may be undervalued at current levels. This latest price level reflects a significant downturn from previous market positions, as the company grapples with the dynamic challenges in the technology sector. Over the past year, DXC Technology, also known as Computer Sciences Corporation (NYSE:DXC) (CSC) before its merger with the Enterprise Services division of Hewlett Packard Enterprise (NYSE:HPE), has seen its stock price erode, culminating in a 1-year change of -27.52%. Despite current challenges, analysts maintain price targets ranging from $18 to $27, and management has been actively buying back shares. For deeper insights into DXC’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which covers this and 1,400+ other top US stocks.
In other recent news, DXC Technology reported its third-quarter fiscal 2025 results, which showed a mixed performance. The company exceeded earnings expectations with adjusted earnings per share of $0.92, surpassing the analyst estimate of $0.77. However, revenue for the quarter was $3.23 billion, falling short of the consensus estimate of $3.26 billion and marking a year-over-year decrease of 5.1%. Despite the revenue miss, DXC raised its full-year adjusted earnings per share guidance to approximately $3.35, higher than the previous forecast and analyst consensus.
In other developments, BMO Capital Markets increased its price target for DXC Technology from $25.00 to $26.00 while maintaining a Market Perform rating. BMO highlighted the company’s solid quarterly performance, though it noted that DXC’s path to stabilizing revenue and achieving pre-restructuring free cash flow levels will require sustained effort. Additionally, DXC Technology announced leadership changes, appointing Sandeep Bhanote as the Financial Services Industry Leader, Anders Lange as Chief Procurement Officer, and T.R. Newcomb as Chief Revenue Officer. These appointments are part of DXC’s strategy to enhance its leadership team and improve service offerings.
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