FALLS CHURCH, Va. (AP) — Computer Sciences Corp., which provides information technology services to a wide range of industries, returned to a profit in its fiscal third quarter benefiting from the sale of two businesses.
The company's quarterly performance topped analysts' estimates, and it raised its full-year forecast for earnings from continuing operations.
Shares climbed to their highest point in more than a year and a half on Tuesday.
Computer Sciences earned $510 million, or $3.27 per share, for the period ended Dec. 28. That compares with a loss of $1.39 billion, or $8.96 per share, a year ago.
The prior-year period included a charge of $9.93 per share related to a U.K. National Health Service contract.
In the most recent quarter, earnings from continuing operations were 77 cents per share. This included a restructuring charge of 13 cents per share. Taking out that charge, earnings from continuing operations were 64 cents per share.
Analysts surveyed by FactSet predicted earnings of 62 cents per share.
Computer Sciences said that it sold its credit services business and some businesses in Italy during the quarter. The credit services business was sold to Equifax Inc. for $1 billion.
Revenue increased 2 percent to $3.78 billion from $3.69 billion. Wall Street expected revenue of $3.73 billion.
The business solutions and services segment reported a 28.7 percent increase in revenue. The management services unit's revenue fell 3 percent, while revenue for the North American public sector declined 2.8 percent.
The Falls Church, Va., company now expects full-year earnings from continuing operations in a range of $2.50 to $2.70 per share. Its previous outlook was for earnings in a range of $2.30 to $2.50 per share.
Analysts expect earnings of $2.48 per share.
The stock rose $4.51, or 10.8 percent, to $46.42 in afternoon trading. Earlier in the session, the shares reached a new 52-week high of $46.61, the highest level since May 2011.