IT services provider Electronic Data Systems on Monday slightly exceeded analysts' expectations for its earnings per share in its first fiscal quarter, to March 31, despite what it called a "challenging" environment in the economy and the IT services market.
EDS had net income of $US354 million, or $0.72 per share, the company said, surpassing by one cent the consensus expectation from analysts polled by Thomson Financial/First Call. This compared with net income of $446 million, or $0.93 per share, in last year's first fiscal quarter, the Texas-based company said.
The company's first-quarter revenue rose 7 per cent from a year earlier, to $5.34 billion, much lower than EDS's expectation of 13 per cent revenue growth.
EDS said its net income in last year's first fiscal quarter included several one-time gains and the cumulative effect of a changed accounting practice. Excluding those gains, net income in last year's first fiscal quarter was $354 million, or $0.63 per share.