So says M2 from the Earnings release yesterday:
'DXC is now in a dramatically better place and I am pleased with the ongoing business momentum that DXC has achieved in FY22'
https://dxc.com/us/en/about-us/newsroom/press-releases/05252022
Doesn't seem to reflect what I see going on which is chaos and losing clients, though I see only one small section so maybe the rest of DXC is going great.
Share buy backs are a terrible idea. It's the action of a management who have no idea how to grow a company.
If you look at all the money wasted by M1 and now M2 on buy backs... Imagine what they could have done with the billions instead? Either spend on building capability or sales or acquisition.
Madness.
I suppose it does make sense in some ways, only doing business that has the right margins means that you could be increasing your EBIT. After all, making little or no money from billions of revenue isn't exactly excellent business.
And thats also why they wasted over $600M on share buyback last fiscal year, with the market cap still declining by more than that - by retiring shares the small profit only has to be spread over a much smaller number of shares so EPS looks good. Eventually DXC will only make $1 profit from $4 revenue but with only one share outstanding the EPS of $1.00 per share will still look OK!
"DXC's transformation -- which includes a plan to shrink its total revenue while at the same time de-risking its balance sheet -- is still on track and working.
The term "better place" was used nine times during Wednesday afternoon's conference call, in reference to the company's self-imposed overhaul."
I saw this written on some financial website article too.
I suppose it does make sense in some ways, only doing business that has the right margins means that you could be increasing your EBIT. After all, making little or no money from billions of revenue isn't exactly excellent business.
so a dramatically better place = shrinking revenue year after year
whereas all the major competitors (with single exception of Kyndryl who seem to be on exact same trajectory as DXC) are growing revenue by 20%+ (Accenture and the major Indian outsourcers)
Mike and his ball, so good at spin.
It obvious if your shrinking the company your losing, rocket scientist not required!
"DXC's transformation -- which includes a plan to shrink its total revenue while at the same time de-risking its balance sheet -- is still on track and working.
The term "better place" was used nine times during Wednesday afternoon's conference call, in reference to the company's self-imposed overhaul."
Apparently DXC is now in a dramatically better place.....
So says M2 from the Earnings release yesterday:
'I am now in a dramatically better place and Steak Cutter 2 and I are pleased with the ongoing bonus momentum that we will achieve in FY22'
There... fixed it for you. ;-)
Pump.
Dump.
Leave.
$1.5B decline this year in revenue, forecast decline of another $1.4B in the coming year
Heck of a momentum - still the Titanic was still moving forward at some speed for a while after hitting the iceberg ...