The post-earnings performance in shares of DXC Technology (DXC) is nothing short of unexpected. DXC fell by one-third and to all-time lows when it cut its full-year guidance. The single-digit P/E and dividend yield of 2.5% is not a selling point for value investors. Should shareholders continue holding DXC? For DIY value investors who waited for a better entry point, is now the time to buy?
DXC reported first-quarter non-GAAP earnings of $1.74 despite revenue falling 7.4% to $4.89 billion. Delays in a few deals sent the book-to-bill ratio to 0.9 times.