Benzinga | May 25, 2021 10:48AM EDT

DXC Technology's Earnings Outlook

On Wednesday, May 26, DXC Technology (NYSE:DXC) will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on DXC Technology management projections, analysts predict EPS of $0.7 on revenue of $4.28 billion. DXC Technology reported a profit of $1.2 per share when it published results during the same quarter last year. Sales in that period totaled $4.82 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be down 41.67%. Revenue would be down 11.11% on a year-over-year basis. Here is how the DXC Technology's reported EPS has stacked up against analyst estimates in the past: Quarter Q3 2021 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.54 0.38 0.12 0.99EPS Actual 0.84 0.64 0.21 1.20Revenue Estimate 4.20 B 4.46 B 4.32 B 4.89 BRevenue Actual 4.29 B 4.55 B 4.50 B 4.82 B

Stock Performance

Shares of DXC Technology were trading at $37.33 as of May 24. Over the last 52-week period, shares are up 113.18%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. DXC Technology is scheduled to hold the call at 17:00:00 ET and can be accessed here.