Why DXC Technology's Stock Crashed Last Night and Soared Today
Shares of DXC Technology (NYSE: DXC) took quite a roller-coaster ride over the last 24 hours. First, the IT services expert reported second-quarter earnings and announced the retirement of CEO Mike Lawrie. Share prices fell as much as 18% in after-hours trading. But the huge drop was erased during the company's earnings call, when it revealed that it intended to pursue "strategic alternatives" for three of its five business units. All was forgiven on Tuesday, and as of about noon EST, investors had lifted the stock by 17.8% from where it closed Monday.
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DXC's second-quarter revenues fell 3.2% year over year to $4.85 billion, just below analysts' consensus estimate of $4.92 billion. Adjusted earnings dropped 32% to $1.38 per diluted share. Here, analysts had been expecting something more like $1.42 per share.
Source Fool.com
