DXC Technology Analysts Slash Their Forecasts After Downbeat Q1 Results

DXC Technology Company DXC reported worse-than-expected first-quarter results and issued weak guidance.

The company reported a revenue decline of 7.0% Y/Y (-3.6% organically) to $3.45 billion, missing the consensus of $3.56 billion. Adjusted EPS of $0.63, down from $0.75, missed the consensus of $0.82.

For FY24, DXC Technology lowered the outlook for revenues to $13.88 billion-$14.03 billion (from $14.40 billion - $14.55 billion; -4.0% to -3.0% organically, adjusted EPS of $3.15 - $3.40 (consensus: $3.86) and adjusted EBIT margin of 7.0%-7.5%.

DXC Technology shares fell 22.4% to $21.00 in pre-market trading.

These analysts made changes to their price targets on DXC Technology following earnings announcement.

• BMO Capital cut the price target on DXC Technology from $27 to $25. BMO Capital analyst Keith Bachman downgraded the stock from Outperform to Market Perform.
• RBC Capital slashed the price target on DXC Technology from $34 to $29. RBC Capital analyst Daniel Perlin downgraded the stock from Outperform to Sector Perform.
• Deutsche Bank lowered DXC Technology price target from $35 to $23. Deutsche Bank analyst Bryan Keane downgraded the stock from Buy to Hold.

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