DXC Technology Company

DXC

Equity

ISIN US23355L1061 / Valor 35991811

New York Stock Exchange, Inc (2024-11-21)

USD 21.82+3.07%

DXC Technology Company
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About company

DXC Technology is a leading provider of IT services, focusing on helping global companies and public sector organizations enhance their operational efficiency and competitiveness through a comprehensive suite of services. The company specializes in managing mission-critical systems and operations, modernizing IT infrastructures, optimizing data architectures, and bolstering security and scalability across various cloud environments, including public, private, and hybrid models. With a clientele that includes some of the world's largest corporations and government entities, DXC Technology is recognized for its ability to deliver significant improvements in performance, customer experience, and IT estate management. The firm's expertise spans across multiple sectors, offering a broad range of services designed to meet the evolving digital needs of its customers.

Summarized from source with an LLMView SourceSector: Technology

Revenue Decline

DXC Technology Company reported revenues of $3.39 billion for the fourth quarter of fiscal year 2024, reflecting a decline of 5.7% compared to the same period in the previous year. On an organic basis, the revenue decreased by 4.9%. The decline was primarily driven by reductions in Modern Workplace and Cloud and ITO segments.

Net Income Improvement

For the fourth quarter of fiscal year 2024, DXC Technology Company reported a net income of $(195) million, or (5.8)% of sales. This is a significant improvement compared to the net income of $(758) million, or (21.1)% of sales, in the same quarter of the previous year. The improvement was largely due to lower adjustments in the mark to market of pensions.

Adjusted EBIT and Margins

DXC Technology Company's EBIT for the fourth quarter of fiscal year 2024 was $(289) million, or (8.5)% of sales. However, when excluding certain items such as amortization of acquired intangible assets and restructuring costs, the adjusted EBIT was $283 million with an adjusted EBIT margin of 8.4%, which was above the company’s guidance range.

Free Cash Flow

In the fourth quarter of fiscal year 2024, DXC Technology Company generated $280 million in operating cash flow. After accounting for capital expenditures of $125 million, the free cash flow stood at $155 million. For the full fiscal year 2024, the company delivered $756 million in free cash flow, marking the third consecutive year of free cash flow exceeding $700 million.

Share Repurchase

During the fourth quarter of fiscal year 2024, DXC Technology Company repurchased 6.2 million shares of its common stock for a total of $138 million. Since the start of fiscal year 2022, the company has retired approximately 32% of its outstanding shares, reflecting a significant return of capital to shareholders.

Summarized from source with an LLMView Source

Key figures

-4.92%1Y

-30.4%3Y

-38.7%5Y

Performance

40.9%1Y

47.4%3Y

59.4%5Y

Volatility