Feeds

EDS delivers Q2 jam, much more to come

Contract signings slip

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Electronic Data Systems gave its investors some good news for a change when it reported second quarter figures at the top end of estimates yesterday and forecast 2006 earnings well above analyst’s forecasts.

However, it also revealed a big drop in second quarter contract signings from last year’s $4bn to $2.8bn this year. It said it was still on target to pull in $20bn of new business this year.

Revenues in the quarter ending 30 June were $5.2bn, down 1 per cent on the year. Net income was $26m, or five cents a share, compared to $270m, or 54 cents a share, last year. On a pro forma basis, earnings were $45m, or nine cents a share. Wall St had expected the firm to lose four cents per share.

Revenues were flat in the Americas, rose 11 per cent in Asia but were down 11 percent in EMEA. The firm has had a pretty horrible time in the UK this year, with continued spats with the UK government over contract screwups.

EDS said yesterday it had “confirmed” its 2005 guidance, which calls for revenues of $20bn to $21bn, and pro forma eps of 50 to 60 cents. Analysts currently expect 42 cents per share.

In 2006, it expects pro forma earnings per share of $1, well up on the 66 cents analysts currently expect.

Related stories

Redundant EDSers threaten legal action
UK Inland Revenue may sue EDS
EDS tax fiasco hit with two barrels
EDS UK cuts jobs
EDS moves to profit in Q1

Top 5 reasons to deploy VMware with Tegile

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Reducing the cost and complexity of web vulnerability management
How using vulnerability assessments to identify exploitable weaknesses and take corrective action can reduce the risk of hackers finding your site and attacking it.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.