Markets & Finance

Bernstein Keeps 'Outperform' on Electronic Data


Bernstein keeps its outperform rating on Electronic Data Systems (EDS).

EDS posted $0.18 third quarter earnings per share, which analyst Rod Bourgeois says is not that bad. He says the third quarter report and the latest guidance is better than the pessimistic expectations discounted by the stock.

Bourgeois thinks EDS is on track to meet his cash flow estimates. He says he was also pleased that the company did not report any new unforeseen write-offs or restructuring charges, and that headcount reductions were much more limited than many had expected. He still thinks strong fourth quarter signings for EDS and the outsourcing industry could serve as positive catalysts.

Bourgeois notes two decidedly negative elements in the third quarter report: rapidly declining revenue from General Motors, and the company's reduced cash flow outlook on the Navy contract.


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus