DXC Technology Co. (DXC) – Investing in the future, while addressing the challenges of today

DXC Technology Co. (DXC) (Q1FY24)

Stock Performance: Over the past year, the stock price of DXC Technology has fallen by 25.69% due to slowing revenue growth and declining profit margins. In the last three months, the stock price has continued to decline, resulting in a negative return of 25.69% due to below-expectation Q1 results.

Q1FY24 results: Q1 revenue declined (7.0%) and down (3.6%) on an organic basis. Diluted Loss Per Share was $0.17 and Non-GAAP Diluted Earnings Per Share was $0.63 in Q1FY24. In Q1FY24 operating cash flow of $127mn, less capital expenditures of $202mn, resulted in free cash flow of ($75mn). Remain on track to complete the $1bn share repurchase program in FY24.

Guidance: For Q2FY24, Organic revenue is expected to post a decline of 5.5% to 4.5%. Adjusted EBIT margin is expected to be between 6.5% and 7%. Non-GAAP diluted EPS is expected to be between $0.65 to $0.70.

Highlights

DXC has been leveraging AI capabilities to enhance its business and improve customer experience. In Q1 FY24, DXC made significant investments in developing AI capabilities and announced a new AI-powered platform. The platform will automate tasks like monitoring IT systems, identifying potential issues, and recommending solutions to help customers manage their IT estates more effectively.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 31

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