CSC Taking Off with Airbus - Analyst Blog

Things are going in favor of the information technology (IT) major Computer Sciences Corporation (CSC). The company recently announced that it has been chosen by Airbus as a principal consultant for further enhancement of the Value Chain Visibility (VCV) and Auto-ID program of the company.

As per this latest agreement, the tech major will be responsible for the implementation of all the Auto-ID and RFID projects. This includes activities like project management, business analysis, change management, operation, monitoring and support. We believe this opens a floodgate of opportunities for CSC in the aviation sector, where some of its competitors like Hewlett-Packard Company (HPQ) have a big presence.

In addition, CSC recently announced the Unified Communications as a Service (UCaaS) technology in collaboration, with the networking major Cisco Systems Inc. (CSCO). This advanced solution targeted mainly at Fortune 1000 companies, is expected to help companies to perform voice, mobile and data services to every single desktop of the organization, thereby increasing productivity and reducing costs.

These strategic tie-ins are expected to diversify the company's product and service portfolio, while at the same time strengthen the revenue base of CSC in the coming quarters. We believe the company’s aggressive marketing, high quality of technology enabled solutions and greater customer satisfactions are doing wonders.

This same strategic approach led to another mammoth deal worth $2.8 billion with the Department of State (DoS) Bureau of Consular Affairs. As per the agreement, CSC will provide a range of visa-related business process support services, local stand-alone facilities and oversight and management of visa-support services for U.S. embassies and consulates abroad.

CSC is witnessing bullish business prospects and raised its full-year earnings per share to $5.05 - $5.15 per share, up from its previous guidance of $4.80 - $5.00 per share, while the revenue guidance remains unchanged at $16.0 billion to $16.5 billion. This apart, the company expects new business wins to increase to $19.0 billion, compared to the previous guidance range of $17.0 billion to $18.0 billion.

Revival in IT spending across the globe, growth in PC shipments and robust business model are all working in favor of the company, although competition is also increasing keeping pace with the growth in demand.
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