DXC Technology (NYSE:DXC) (DXC— $80.61 —NYSE) is a leading information technology services company. The stock appreciated sharply over the last two years after it spun-out government services provider CSRA and merged with the Enterprise Services business of HP Enterprise. This quarter the shares gave up some of their gains. We think the weakness was due to disappointment associated with guidance for fiscal 2019 (ends March) and some investor positioning ahead of its spin of Perspecta. The guidance was lower mostly due to the removal of profits from the spin out and some stranded costs. We think the issue is transient and that the stock remains one of the least expensive in the portfolio.
From Keeley Management's Mid Cap Dividend Value Fund second quarter 2018 shareholder letter.
