EDS Slashes Profit Outlook for Quarter
Electronic Data Systems Corp. said third-quarter profit will be a fifth of what it had forecast as corporations slash spending on computer-services contracts. The announcement sent EDS shares down 34% in extended trading and pulled down shares of its rivals.
EDS, the world’s No. 2 seller of computer services, said sales will be $5.3 billion to $5.5 billion, down as much as 5% from a year ago, and profit will come in at 12 cents to 14 cents a share, rather than the 74 cents it had expected.
Fourth-quarter sales and earnings also will miss estimates, the company said.
EDS closed down $1.30 at $36.46 on the New York Stock Exchange before the announcement and fell to $24 after hours.
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