Tech Industry

EDS earnings rise in 3Q

EDS (NYSE: EDS) topped analyst estimates by a penny in the third quarter.

After market close Thursday, the IT services provider reported third quarter net income of $278.7 million, or 59 cents per share. First Call's survey of 15 analysts predicted a profit of 58 cents per share.

Third quarter revenue increased to $4.75 billion from $4.71 billion in the comparable period a year earlier. Revenue excluding business from General Motors (NYSE: GM) increased 2 percent, or 5 percent if currency effects are excluded. GM business fell to $836.6 million, down 4 percent from $869.7 million a year earlier.

"We estimate that we'll be looking at fourth-quarter growth rates (in organic revenue) of low- to mid-double-digits and then for the full year 2001 we're expecting to be up in the market range of growth for the industry which is that mid-double-digit sector," Chief Financial Officer Jim Daley told Reuters.

Analysts said the sales figures including the adjusted ones were lower than widely expected, apparently as a result of the weak euro currency rate.

Operating margin rose to 9.7 percent from 8.7 percent in the third quarter of 1999. The company said it remains on track to reach its previously stated goal of 10 percent operating margins by the end of 2000.

EDS in the third quarter landed more than 1,000 contracts worth a total of $6.2 billion.

-- Reuters contributed to this report.

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