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DXC Earnings Preview: 4 Biggest Things To Focus On

C.J. Fairfield

DXC Technology earnings preview, from partnerships with VMware and AWS to increasing cash flow, DXC is positioning itself for growth in 2022.

 

 What Is DXC Focusing On To Increase Cash Flow In 2022?

Ken Sharp, executive vice president and CFO of DXC, said on a fourth-quarter earnings call that going forward the company will remediate “our material weakness and the impact it has on our corporate governance” and having a strong balance sheet going into 2022.

“We paid down $6.5 billion of debt in the past nine months and subsequent to year-end, retired an additional $500 million,” Sharp said during a fourth-quarter earnings call. “We are now approaching a far more manageable $5 billion debt level. Further, we have relatively low maturities over the next three years. We remain committed to an investment-grade credit profile, and I believe our actions more than demonstrate our commitment. Third, we will focus on improving cash flow.”

To improve cash flow, Sharp said DXC will reduce restructuring and TSI expense from about $500 million in the 2022 fiscal year to under $100 million in fiscal year 2024.

“As we generate free cash flow, we will appropriately deploy capital to invest in our business and return capital to our shareholders, all the while staying focused on maintaining our investment-grade credit rating,” he said during the earnings call.

It’ll be noteworthy to watch if this plan of action holds true and will be reflected in its fiscal year 2022 first-quarter earnings.

 
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CJ Fairfield

CJ Fairfield is an associate editor at CRN covering solution providers, MSPs and distributors. Prior to joining CRN, she worked at daily newspapers, including The Press of Atlantic City in New Jersey and The Frederick News-Post in Maryland. She can be reached at cfairfield@thechannelcompany.com.

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