Quarterly Update
published on Nov 15, 2017
Report Overview:
NelsonHall’s Quarterly Update on DXC provides a snapshot of developments at DXC in the last quarter.
Who is this Report for:
NelsonHall’s Quarterly Update on DXC Technology (DXC) provides a snapshot of developments at the company in the last quarter. It accompanies NelsonHall’s more comprehensive Key Vendor Assessment program.
Both programs are designed for:
- Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets
- Sourcing managers monitoring the capabilities of existing suppliers of IT and BPO services and identifying vendor suitability for these services
- Consultants advising clients on vendor selection
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services sector.
Scope of this Report:
The report provides a quarterly update on DXC Technology, looking at financial performance and key developments during the period, plus pro forma combined revenue information for FY17
Key Findings & Highlights:
Q2 FY18 Performance: Beats on Revenue with First Quarter Contribution from Tribridge, Margin Expansion Continues
- Digital revenue growth is approaching the 3-year target CAGR
- Industry IP and BPS growth is well below the target
- Enterprise cloud apps and consulting revenue growth was boosted by Tribridge
- The rate of decline in traditional data center business is reducing
- Security revenues disappointed, but security bookings were healthy
- FY18 guidance of revenue is maintained.
- Adjusted EBIT margin continues to expand
- DXC continues to execute on its cost synergy plan.
Bookings: apparently healthy in most of the targeted growth areas
Decision to spin off USPS
Restructuring of JV agreement with HCL, hands over rights to Hogan
Two acquisitions to build Microsoft Dynamics and ServiceNow practices in new regions
New delivery center in New Orleans