DXC Technology (DXC, Financial)is one of the world’s largest providers of information technology services. DXC saw several setbacks in the quarter which drove the share price lower. The first was disappointing fiscal first quarter financial results. While the company has done an admirable job cutting costs, it has been unable to stem its revenue declines. It also lowered its full fiscal year (ends March) outlook. The second setback was the retirement of CEO Mike Lawrie. While new CEO Mike Salvino comes with an excellent track record and is probably better suited to lead the company at this stage of its evolution, concerns arose that new management may have to ramp up spending in order to stabilize revenue growth.
From Keeley Asset Management's Keeley Mid Cap Dividend Value Fund third-quarter 2019 shareholder letter.
