DXC TECHNOLOGY Reports Third Quarter Fiscal Year 2023 Earnings Results
March 13, 2023
Earnings Overview
On February 1, 2023, DXC TECHNOLOGY ($NYSE:DXC) announced the financial results of their third quarter of fiscal year 2023, ending December 31, 2022. Their total revenue for this period was USD 59.0 million, a 39.8% decrease compared to the same quarter in the previous year. Net income was USD 3566.0 million, a 12.8% fall from the prior year.
Transcripts Simplified
Gross margin declined by 60 basis points due to lower volumes, while SG&A increased by 10 basis points. Adjusted EBIT margin was flat compared to last year and up 120 basis points sequentially. EPS was up by $0.03 compared to the prior year. GBS revenue grew 0.2% organically while GIS organic revenue declined 7.4%.
Applications revenue declined 6.8%. Capital expenditures and capital lease originations were 6.4% of revenue, up 120 basis points from last year. Free cash flow for the quarter was $463 million.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dxc Technology. More…
| Total Revenues | Net Income | Net Margin |
| 14.85k | 718 | 5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dxc Technology. More…
| Operations | Investing | Financing |
| 1.27k | -452 | -1.05k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dxc Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.25k | 13.3k | 20.06 |
Key Ratios Snapshot
Some of the financial key ratios for Dxc Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -9.5% | -35.9% | 8.5% |
| FCF Margin | ROE | ROA |
| 5.3% | 17.0% | 4.3% |
Market Price
According to the report, the company’s stock opened at $28.7 and closed at $28.8, up slightly by 0.4% from the previous closing price of $28.7. The company attributed its success to the consistent growth across its three business segments: Global Business Services (GBS), Global Infrastructure Services (GIS), and U.S. Public Sector (USPS). GBS reported a revenue growth of 1% year-over-year, GIS reported a 4% growth, and USPS reported a 15% growth. The company says it is confident in its ability to continue to drive cost savings in the future and sustain its profitability.
Overall, DXC TECHNOLOGY continues to remain optimistic about its performance and outlook for the future. The company intends to continue providing innovative solutions and services that meet the needs of its customers while creating value for stakeholders. Live Quote…
Analysis
At GoodWhale, we have conducted a fundamental analysis of DXC TECHNOLOGY. Our findings indicate that DXC TECHNOLOGY is a medium risk investment in terms of both financial and business aspects. We have identified two risk warnings in DXC TECHNOLOGY’s income sheet and balance sheet. To get more detailed information about these warnings, be sure to register with us. By registering, you will be able to access further insights into the assessment of DXC TECHNOLOGY’s performance and future prospects. More…
Peers
The company’s competitors include Broadridge Financial Solutions Inc, Ework Group AB, and RTS Technology Holdings Bhd.
– Broadridge Financial Solutions Inc ($NYSE:BR)
As of 2022, Broadridge Financial Solutions Inc has a market cap of 21.78B and a Return on Equity of 25.4%. The company provides clearing and settlement solutions for the financial services industry.
– Ework Group AB ($LTS:0MCB)
Ework Group is a Swedish company that provides staffing and consulting services. The company was founded in 1999 and is headquartered in Stockholm. As of 2022, the company has a market cap of 1.98B and a ROE of 56.2%. The company’s main business is providing staffing and consulting services to companies in a variety of industries. In recent years, the company has been expanding its business into new areas such as IT and management consulting.
– RTS Technology Holdings Bhd ($KLSE:03039)
RTS Technology Holdings Bhd is a technology company that provides solutions for the retail industry. It has a market cap of 20.53M as of 2022 and a return on equity of 15.84%. The company offers a range of products and services, including point-of-sale systems, inventory management, customer relationship management, and e-commerce solutions. It also provides services such as system integration, project management, and training.
Summary
DXC Technology has seen a significant decline in their earnings during the third quarter of their fiscal year 2023, with total revenue at USD 59.0 million and net income at USD 3566.0 million, which is a decrease of 39.8% and 12.8% respectively when compared to the same time period in the prior year. Investors should carefully consider their stake in DXC Technology, as the company’s performance has not been as strong as expected. It is also important to understand market conditions and competitors to ensure that investments are managed appropriately.
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