CSC's comeback in full swing
A few things have crossed my desk in the last few weeks that indicate that Computer Sciences Corp.’s efforts to right the ship are paying off.
First off, CEO Mike Lawrie pledged that he’d bring focus to the company by establishing clear lines of accountability, and a streamlined cost structure. He’d also vowed to fix poor performing contracts, in particular the U.K. National Health Service.
More recently, CSC sold off two business units. Its credit services business was sold to Equifax for $1 billion. CSC also sold an Australian IT staffing business for $73.5 million.
In its last quarterly report, CSC reported its operating margin as 7.7 percent, compared to -1.9 percent a year earlier, and up from 4.6 percent from the quarter before.
The markets have noticed the improvement. As recently as late July, the company hit its 52-week low of $22.19 a share. August saw a significant jump to the 30s, though, and November and December have seen another climb. The company’s stock is now trading over $40 a share, a 52-week high.
So, Lawrie has to be feeling good as 2012 begins to wind down, but he's probably the first to admit there is still work to be done.
Posted by Nick Wakeman on Dec 19, 2012 at 8:11 AM