DXC Technology Co. investors were having their worst day in four years after the information-technology consultant missed fiscal first-quarter earnings expectations and slashed its full-year outlook due to particular weakness in its cloud and outsourcing businesses.
The stock DXC plummeted 29.4% in midday trading, enough to pace the S&P 500’s SPX and New York Stock Exchange’s decliners. It was headed for the lowest close since Nov. 6, 2020, and the biggest one-day selloff since it plunged 30.5% on Aug. 9, 2019. “In the quarter, we were impacted by slowdown in customer expenditures,” Del Bene said. “This is mainly the resale of IT equipment, such as PCs, networking gear and servers and project work.”
“The declines in resale and projects are consistent with what is taking place in the industry, with the economic environment impacting spending,” Del Bene said. For fiscal 2024, the guidance range for adjusted EPS was lowered to $3.15 to $3.40 from $3.80 to $4.05.