DXC Technology Co (NYSE: DXC) stock rose over 2.21% in the pre market session on August 8th, 2018.
During the first quarter of 2019, the group continue to build momentum in digital, with double-digit growth in each of the digital areas, and the company also drove growth in the industry offerings, where the companies are seeing strong demand in financial services and healthcare. During the quarter, the company had completed the separation of the U.S. Public Sector business, and DXC also recently announced the intent to acquire Molina Medicaid Solutions from Molina Healthcare. This transaction will expand the state Medicaid business while enhancing the capabilities the company provide these agencies. DXC is on track to deliver against its fiscal 2019 financial targets
The company has reported the net income of $266 million for the first quarter, including $(144) million of restructuring costs, $(54) million of transaction, separation and integration-related costs, $(102) million of amortization of acquired intangibles and $(33) million of tax adjustment related to U.S. tax reform. This compares with $173 million in the prior year period. DXC after the company in the second quarter of FY 19 has reported the adjusted earnings per share of $1.93, beating the analysts’ estimates for the adjusted earnings per share of $1.75. The company had reported the adjusted revenue growth of 0.9 percent to $5.28 billion in the second quarter of FY 19, missing the analysts’ estimates for revenue of $5.32 billion. Further, during the first quarter of 2019, Adjusted EBIT margin was 15.2% compared with 10.9% in the year ago quarter. Net cash provided by operating activities was $473 million in the first quarter, compared with $519 million in the year ago period. Adjusted free cash flow was $321 million in the first quarter.
Moreover, in the first quarter, digital revenue grew 21% year-over-year, primarily due the growth in the cloud business. And building on that momentum today, the company has announced an agreement with Amazon Web Services to build a new strategic DXC AWS integrated practice to deliver IT migration, application transformation and business innovation to global enterprise clients. Industry IP and BPS revenue grew 1.8% year-over-year. And in the first quarter, digital book-to-bill was 1.6x and industry IP and BPS book-to-bill was 0.8x.
During the first quarter, DXC has returned $375 million to shareholders, consisting of $51 million in common stock dividends and $324 million in share repurchases.