DXC posted earnings last night and the stock is up 8% today. Yes, they missed revenue targets, but the earnings per share blew expectations. That means cost cutting is ahead of revenue growth....precisely what they want.
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For the investor Dixie is a good thing right now, for the customers and the employee's not so good.
DXC Technology Co
NYSE: DXC - Aug 15, 8:43 AM EDT
84.23USD0.00 (0.00%)
Pre-market: 84.60 Price increase0.44%
This having WFR's hanging over our heads every day is not good for my stress and health, but as a older American there isn't a lot of choices, unless I want to get a new job miles from where I live and have to be on call again 24 by 7.
I say lets laid off the CEO and EVP's and send their jobs to lower cost area's. That will save hundreds of technical people that really do the work for the customers anyway.
Who's with me?
Adding to that analogy. As they milk the poor cow while starving it, they are whipping it wildly trying to get it to produce more milk.
Buncha a$$-clowns.
Amen brutha.
The analysts are in and out of their positions so rapidly, most could not care less about the long-term prospects of the companies. They know what MikeyL is up to, and they are cheering from the sidelines. There is no way this is stopping anytime soon.
DXC just keeps milking the malnourished cow. The milk production is getting less and less so they cut the food to save money to offset the reduced milk revenue. When the milk output drops too low, they will shoot the cow in the head and will sell the skin to a leather company in India. :-)
It's a death-spiral that is accelerating exponentially. If you are working there and STILL not looking for other work, well... you will have earned what happened to you. I did. Learn from me.
The analysts do know what they are talking about, they see a massive asset strip.
When the stated aim is to return 30% of the company's net worth, this is a fire sale that is attractive to the investors.
Its not about sustainability, its a feeding frenzing of cashing out.
Three years of DXC feeding frenzy then probably another acquisition/merger - more grist for the grinder. Wonder who it will be next but plenty of other struggling IT services companies ripe for a stripping.
That's the DXC "product".
I'm the OP. Look at what the Wall Street analysts are saying. Some peg the stock at 93...others as high as 100. This shows you that they know absolutely nothing about what is really going on in the industry (let alone at our beloved company) and that they simply can't see past their navels (meaning the next earrings report). Wall Street analysts (generally speaking) are paid ridiculous sums of money without having any idea what they are talking about. Welcome to Muricaaaah
If you mean their strategy is to get a short term stock boost while waiting for their stock options to vest in a couple of years then leave DXC immediately, yep their strategy is working perfectly.
What about the future share value? If a company is not performing well and do you feel the share value increase?
No one besides employees cares about long term.... keep cuts and layoffs coming until stock hits 90!
The revenue mis was not that bad, albeit opposite the economy right now. I agree, short term prosperity for execs and shareholders.
The strategy is working.. SHORT TERM..
They seem to be trying to cut their way to prosperity, which we all know will not work.
So Lawrie should just sack everyone then costs will be nil and revenue will provide an infinite margin?
Genius......................................................except they have to pay their bills sometime. They cannot hold cash back from those they owe forever.