Computer Sciences Corp. | $CSC Stock | Shares Gap Up On News of Merger with HPE’s Enterprise Service Business


Computer Sciences Corporation (NYSE: CSC)



Computer Sciences Corporation (CSC), an information technology solutions company yesterday reported their fourth quarter and fiscal year 2016 financial results. Computer Sciences reported a fiscal fourth quarter loss of $126 million. Computer Sciences reported fourth quarter adjusted earnings loss of $0.73 per share. However Computer Sciences shares increased 27% during after market trading on news that it will be merging with HPE’s Enterprise service segment.


Computer Sciences Corporation CEO’s Comments

“In fiscal 2016, CSC took transformative steps forward in our strategy of delivering next-generation capabilities to our customers globally” said Mike Lawrie, chairman, president and CEO. “Following the successful separation of our federal public sector business, we acquired UXC and Xchanging, two leaders in enterprise applications and insurance solutions, respectively. As we continue to invest in our offerings, we reported solid profitability and earnings growth in fiscal 2016, and are well positioned to deliver revenue growth and margin expansion in the coming year.”  Business Wire


CSC Technical Analysis

CSC Chart

CSC opened trading yesterday at $35.08 which was up from the previous days trading of $35. CSC closed trading yesterday at $35.65 and spiked up after market to $45.2, equivalent to a 27% increase from the closing price. Taking a look at the daily chart we can see that with this gap up we are in unchartered territory as CSC is trading at all time highs. Taking a closer look at the daily chart we can see that CSC has been on an overall upward trend dating back to February 11th when it traded at $27.05. CSC has a float of 137.34 million shares and traded 2.8 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see CSC open trading on Friday above $42 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.50 from my entry position fearing anything more than that and the stock would start to fill in the gap up.


Company Profile

Computer Sciences Corporation provides information technology (IT) and professional services and solutions primarily in North America, Europe, Asia, and Australia. The company operates through Global Business Services and Global Infrastructure Services segments. The Global Business Services segment provides technology solutions, including consulting, applications services, and software. This segment offers applications services that optimize and modernize clients’ business and technical environments enabling clients to capitalize on emerging services, such as cloud, mobility, and big data within new commercial models, such as the ‘as a Service’ and digital economies; consulting services that help organizations innovate, transform, and create sustainable competitive advantage; and vertically-aligned software solutions and process-based intellectual property power mission-critical transaction engines in insurance, banking, healthcare and life sciences, manufacturing, and various other industries. The Global Infrastructure Services segment provides managed and virtual desktop solutions, unified communications and collaboration services, data center management, cyber security, and compute and managed storage solutions to commercial clients. This segment also delivers next-generation cloud offerings, including infrastructure as a service, private cloud solutions, CloudMail, and storage as a service. The company has a strategic partnership with HCL Technologies to create an applications modernization delivery network. The company was founded in 1959 and is headquartered in Falls Church, Virginia.  Yahoo Finance