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Excerpts from the Confidential Client Edition
Analysis of Computer Sciences Corp.’s
First Half FY04 Business Results
War Is Great!
CSC Thriving in Global War Economy: Government Business Almost Doubled
November 12 – “War
is great!” - could be the new mantra of Computer Sciences Corp. (CSC),
juxtaposing the “Allah Akhbar” (“God is great!”) chants by Islamic
warriors. It’s just that there is nothing idealistic or religious
about CSC’s war profiteering. The
company’s federal government business is booming, especially the
“death merchant” (Pentagon) portion.
to its acquisition of DynCorp earlier this year (see “Back
to the Future,” February 2003), CSC’s U.S. government revenues
have nearly doubled (from $772 million in second quarter of FY02, to $1.52
billion this year). Revenues
related to the Pentagon contracts more than doubled (from $449 million
last year, to $985 million in the latest quarter).
This vaults CSC into the No. 6 position on the Pentagon
Top 50 list.
CSC’s winning pace in Washington seems to be accelerating.
About 80% of its new contract sales in the latest quarter ($3.5
billion) were the federal government awards.
By contrast, only about $700 million of its new contract sales came
from the commercial sector.
CSC Stock Surges
Meanwhile, Wall Street lapped up the CSC second quarter report, boosting its stock by nearly 10%, just as it did nearly six months ago, following the company’s final FY03 release (see “Less Than Meets the Eye,” May 2003). And it did it on a day when the market remained virtually flat (see the CSC vs. S&P chart).
Stock Market Quirks
Which of the following top six global IT
services competitors has shown the best stock market performance in the
last six months (in alphabetical order):
Cap Gemini Ernst & Young
For additional Annex Research reports, check out...
A selection from prior years: Analysis of CSC calendar 2000 results (Mar 26, 2000), CSC's FY2000 Business Results (May 10, 2000), Business Is Humming Nicely (Nov 3, 2000), CSC 3Q2K, CIO Survey (Feb. 29, 2000), CSC: A Mouse That Roars? (Nov 1998)
Volume XIX, No. 2003-19
Editor: Bob Djurdjevic
P.O. Box 97100, Phoenix, Arizona
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