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Abhoy Sarkar's Avatar
published in Blogs
Aug 09, 2019

DXC Technology (DXC, $36.31) misses Q2 earnings estimates, and issues lower-than-expected full-year guidance

DXC Technology shares were losing more than -31% in trading Friday, following news that the company’s second quarter earnings missed estimates, margins fell from the year-ago period, and the company’s outlook that full-year earnings would fall heavily short of Wall Street estimates.

The information tech company reported adjusted earnings from continuing operations of $1.74 a share in the first fiscal quarter  2020, lower than the year-ago quarter’s $1.93. The EPS also fell below Wall Street analysts’ estimates of $1.71 a share.

What’s more, adjusted earnings before interest and taxes (EBIT) as a percentage of revenue was 13.3% in the quarter, substantially down from 15.2% a year ago.

CEO Mike Lawrie said the company is expecting adjusted earnings per share for the full year to be in the range of $7 to $7.75, far below the average Wall Street estimate of $8.20 for the year.

 

Related Ticker: DXC

DXC in upward trend: 10-day moving average crossed above 50-day moving average on May 26, 2023

The 10-day moving average for DXC crossed bullishly above the 50-day moving average on May 26, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where DXC's RSI Indicator exited the oversold zone, of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Momentum Indicator moved above the 0 level on May 17, 2023. You may want to consider a long position or call options on DXC as a result. In of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for DXC just turned positive on May 15, 2023. Looking at past instances where DXC's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .

DXC moved above its 50-day moving average on May 19, 2023 date and that indicates a change from a downward trend to an upward trend.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DXC advanced for three days, in of 303 cases, the price rose further within the following month. The odds of a continued upward trend are .

Bearish Trend Analysis

The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where DXC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

DXC broke above its upper Bollinger Band on May 19, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Aroon Indicator for DXC entered a downward trend on May 15, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

Fear & Greed

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.526) is normal, around the industry mean (3.957). P/E Ratio (8.278) is within average values for comparable stocks, (49.593). DXC's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.480). Dividend Yield (0.000) settles around the average of (0.033) among similar stocks. P/S Ratio (0.401) is also within normal values, averaging (2.657).

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DXC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DXC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.

Notable companies

The most notable companies in this group are Accenture PLC (NYSE:ACN), International Business Machines Corp (NYSE:IBM), Xerox Holdings Corp (NASDAQ:XRX), Unisys Corp (NYSE:UIS).

Industry description

The industry, whose total market cap runs into trillions, makes hardware/software that allows data to be stored, retrieved, transmitted, and manipulated on computers. With the ever-increasing relevance of data, the information technology (IT) industry has gained momentous growth over the years, and continues to thrive on innovation. Some of the behemoths in the industry are International Business Machines Corporation, Accenture, and VMware, Inc.

Market Cap

The average market capitalization across the Information Technology Services Industry is 7.07B. The market cap for tickers in the group ranges from 0 to 194.78B. ACN holds the highest valuation in this group at 194.78B. The lowest valued company is ARSC at 0.

High and low price notable news

The average weekly price growth across all stocks in the Information Technology Services Industry was -2%. For the same Industry, the average monthly price growth was -1%, and the average quarterly price growth was -5%. DVRNF experienced the highest price growth at 29%, while BNXAF experienced the biggest fall at -35%.

Volume

The average weekly volume growth across all stocks in the Information Technology Services Industry was 1%. For the same stocks of the Industry, the average monthly volume growth was 13% and the average quarterly volume growth was 10%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 37
P/E Growth Rating: 64
Price Growth Rating: 55
SMR Rating: 70
Profit Risk Rating: 83
Seasonality Score: 10 (-100 ... +100)
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Technical Analysis# Of IndicatorsAvg. Odds
   
   
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A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

a provider of technology consulting, outsourcing and support services

Industry InformationTechnologyServices

Profile
Fundamentals
Details
Industry
Data Processing Services
Address
20408 Bashan Drive
Phone
+1 703 245-9700
Employees
130000
Web
https://www.dxc.technology
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DXC and

Correlation & Price change

A.I.dvisor indicates that over the last year, DXC has been loosely correlated with ACN. These tickers have moved in lockstep 57% of the time. This A.I.-generated data suggests there is some statistical probability that if DXC jumps, then ACN could also see price increases.

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To DXC
1D Price
Change %
DXC100%
+2.06%
ACN - DXC
57%
Loosely correlated
+1.59%
PRFT - DXC
53%
Loosely correlated
-1.43%
G - DXC
53%
Loosely correlated
-2.20%
FISV - DXC
52%
Loosely correlated
-0.71%
NCR - DXC
51%
Loosely correlated
-0.79%
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