DXC achieved a decent set of results with strong bookings resulting in $3.57 billion in revenues meeting Wall Street expectations. Their organic revenue increased for the second consecutive quarter and the company delivered an earnings beat. DXC continues to increase margins and stabilize revenue in GIS. Besides, the company expanded its margins and grew its revenue in GBS. GBS continues to grow as a portion of DXC, currently making up about 49%, up from 48% in Q2, showing that the business mix is shifting in favor of GBS’s cutting-edge technology. Furthermore, they signed two new logos by concluding agreements with SAP, Georg Fischer, and Modern Workplace in Q3. The management claims to be seeing the benefits of improved financial discipline and ITO as the market’s demand translated into solid bookings this quarter. They also signed over $800 million in ITO deals that were postponed from the first half of the year. We give the company a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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