Computer Sciences Corporation
(CSC), an information technology (IT) services company, recently entered into a strategic alliance with business support systems (BSS) solutions provider Intec (ITL). The company is trying to unlock the potential of the BSS market, and expects that this partnership will enable them to provide BSS solutions to the Service Providers without increasing cost.
This technical collaboration will derive advantages of the communication and IT expertise of both the entities, which is expected to enable the end customers to increase their revenue base and increase operational efficiency. We believe this will enhance its customer base as CSC will now be able to penetrate deep into the BSS market.
This apart, the company is on a winning spree, having won several big deals in the last few months, some of the important ones being the enhancement of the Value Chain Visibility (VCV) and Auto-ID program with the global aircraft manufacturing company Airbus and another mammoth deal worth $2.8 billion with the Department of State (DoS) Bureau of Consular Affairs. As per this deal, CSC will provide a range of visa-related business process support services to U.S. embassies and consulates abroad.
Strategic alliances, major deal wins, product enhancement and positive macro economic developments are helping the company to enhance its business prospects. The company reported decent third quarter results and we expect the company to roll out encouraging fourth quarter numbers when it reports next month.
The company made an upward revision of its fiscal year 2010 guidance and expects earnings per share to be in the range of $5.05 – $5.15 per share, up from its previous guidance of $4.80 – $5.00 per share, while the revenue guidance remains unchanged at $16.0 billion to $16.5 billion. The company is constantly growing through acquisitions that enhance its services portfolio and expand its operations in new markets. It has a steady flow of new business, especially in the government vertical and is financially sound.
On the other hand, we are a bit concerned about the intense competition, that is keeping pace with the opportunities in the IT and cloud computing space, from big players such as Accenture (ACN), Hewlett-Packard (HPQ) and CA Inc. (CA).
Read the full analyst report on “CSC”
Read the full analyst report on “ACN”
Read the full analyst report on “HPQ”
Read the full analyst report on “CA”
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