The analysts should be hammering on the call.
One of the worst set if results.
Revenue under 4billion now staggering used to be 6billion per quarter when DXC started.
Famous book to bill under 1
Profit Margin down a full 1%
Earnings per share also down even after massive share buy back.
Nothing positive to report after 3 years.
We sell digital transformation , how can we still be in a transformation journey? It shows DXC doesn't have a clue about digital transformation.
We still bring legacy CSC this or legacy HPES that, if we are really OneDXC we shouldn't have any legacy anything!!!!!!!!!!!!!!!!!!!!!
#MrShoutya$$hoe #ISeeDXCfail
"Captain Smith, the stock price has dropped 17.94%...is it time to lower the lifeboats yet?"......"NAH!...we are still on our transformation journey....." Like they say, history repeats itself....
"We significantly improved our organic revenue performance"
The analysts should be hammering on the call
By analysts standards they did - seriously questioning the forecast for it all to be OK by FY24, asking why Mikey2 wasn't on top of margins in Q1 until midway through the quarter - asking if more investment is needed in the sales force ;-)
Mikey2 didn't help by getting the Deutchse Bank analyst name wrong (you'd think they would know these people well by now!)
and as for Mikey2 trumpeting the fact that he has the same team of operators who cut $700M in FY21 he's confident they can manage $500M in the remaining 3 quarters of FY23 is not really a great look ...
https://www.fool.com/earnings/call-transcripts/2022/08/03/dxc-technology-company-dxc-q1-2023-earnings-call-t/
Platform - x is picking up sales, next quarter should be definitely better.
When the revenue is one dollar - bagel steak brandy will take a bonus out of that as well!
you know its bad when a "highlight" is that "Modern" Digital Workplace revenue "only" declined 16.1% and that's an "improvement"
As for Q2 forecast - more of the same, another $450M drop in revenue
For whole of FY23 now forecasting a revenue drop of $1.6B, down to $14.6B
So at this constant rate of decline DXC will be down to revenue of $1 precisely in about 9 years time - unless Mikey2 pulls out of more deals and accelerates the decline, still that final $1 will be very profitable ...
so lets look at the details
Revenues of $3.71 billion for Q1 FY23, down 10.5% as compared to prior year period - a reduction of $434M from same quarter last year.
Net income was just $103M a reduction of $179M from same quarter a year ago
Solution? Sack more people and keep buying back shares ...
"Our focus now is to accelerate our cost optimization to drive out $500 million in cost by year end"
Returned $266 million to shareholders by repurchasing 8.9 million shares in Q1 FY23
No wonder after hours trading had the share price already down >7%
What a car crash.
The share price will tank to 25US.
The FY 24 figures have become pie in the sky not achievable unless the Dollar collapses.
The only positive is Mike cancelled a few deals because the pricing was not right.
Finally realized you can't give the customers a contract cheaper than they signed 10 years ago especially in the current 10% inflation climate. So well done on that if they are pricing it right and if they aren't paying Cola for staff etc no point signing a new contract.
Only way he saw forward was cutting more staff, I'm taking ittl that will be the duplicate management layers of unnecessary overhead his going to reduce which won't effect the delivery of service.
All in all I can see Mike S going shortly as he HSS disappointed several times, this is like the lawrie quarter when he got chopped.
Culture week was a slap in the face!!! You want to increase company morale, then STOP the share buybacks and give the employee's the money in pay increases.
Stock buy back to increase stock price should be illegal!
Please join the culture week and help unify this company. That is the need of the hour in tough times like this.
Share Buy back, why ? Give the money to your employee's as pay increases! More Outsourcing, meaning more lost jobs where we need it most!
Staff optimization (More layoffs !) including increasing productivity and offshoring.
Mr Shouty a$$-ho-e