Shares of DXC Technology have taken a sharp downward turn after the company reported disappointing fiscal first-quarter results and reduced its fiscal 2024 guidance. This development has prompted multiple analysts to downgrade their ratings on the stock.
The stock is currently down 28% in early trading, currently priced at $19.43. Since the beginning of the year, shares have fallen over 25%, indicating a significant decline.
DXC Technology, an IT-services provider based in Ashburn, Va., announced on Wednesday after the market closed that it now expects its revenue for fiscal 2024 to be in the range of $13.88 billion to $14.03 billion. This is a decrease from its previous forecast of $14.4 billion to $14.55 billion.
Similarly, the adjusted earnings per share, which excludes one-time items, are now projected to be between $3.15 and $3.40, compared to the prior guidance of $3.80 to $4.05.
The downward revision in guidance came after DXC reported adjusted earnings of 63 cents per share for the first quarter, falling short of analysts’ expectations of 82 cents per share. Additionally, quarterly revenue came in at $3.45 billion, below the forecasted $3.56 billion.
As a result of these disappointing results, at least five analysts have downgraded their ratings and revised their price targets for DXC’s stock.
