Computer Sciences reports 57% increase in earnings

Computer Sciences Corp., the El Segundo-based computer service provider, posted a 57% gain in fiscal fourth-quarter profit Wednesday as income tax expenses fell and the company won contracts in Europe and North America.

Net income for the three months ended March 30 rose to $249.7 million, or $1.42 a share, from $158.8 million, or 84 cents, a year earlier, the company said. Sales climbed 4% to $4.05 billion, falling just short of the $4.08 billion average of estimates compiled by Bloomberg.

Revenue from European contracts rose 8.8% to $1.2 billion, making up almost a third of the total, and sales to the Defense Department climbed 6.4% to $978.4 million.

Income tax payments fell 35% from a year earlier after Computer Sciences revised profit for that period to fix accounting errors related to the sale of software licenses. The mistakes cut year-ago annual profit by $90.7 million.

The company said its fiscal first-quarter profit would be 65 cents to 75 cents a share, excluding some items. The figure may fall short of the average estimate of analysts in a Bloomberg survey, which is 75 cents. Computer Sciences predicted first-quarter sales of $3.7 billion to $3.8 billion, in line with estimates.

The company released its earnings report after the close of the stock market. Shares of the company rose $1.29 to $56.03 during the regular session but were down more than 2.7% in after-hours trading.