CSRA Inc. (CSRA) has reported 162.50 percent jump in profit for the quarter ended Dec. 30, 2016. The company has earned $126 million, or $0.76 a share in the quarter, compared with $48 million, or $0.29 a share for the same period last year.
Revenue during the quarter grew 18.41 percent to $1,222 million from $1,032 million in the previous year period. Gross margin for the quarter expanded 830 basis points over the previous year period to 29.13 percent. Total expenses were 80.28 percent of quarterly revenues, down from 92.64 percent for the same period last year. This has led to an improvement of 1236 basis points in operating margin to 19.72 percent.
Operating income for the quarter was $241 million, compared with $76 million in the previous year period.
"Our strong third quarter was marked by superb cash flow and large, strategic new business wins," said Larry Prior, CSRA president and chief executive officer. "With these new wins, we are expanding our presence in next generation IT and bridging the technology needs of our customers with the capabilities and offerings of our technology partners. "
For fiscal year 2017, CSRA forecasts revenue to be in the range of $4,960 million to $5,010 million. The company expects diluted earnings per share to be in the range of $1.98 to $2.02 on adjusted basis.
Operating cash flow improves
CSRA Inc. has generated cash of $438 million from operating activities during the nine month period, up 16.80 percent or $63 million, when compared with the last year period.
The company has spent $118 million cash to meet investing activities during the nine month period as against cash outgo of $1,551 million in the last year period.
The company has spent $288 million cash to carry out financing activities during the nine month period as against cash inflow of $1,376 million in the last year period.
Cash and cash equivalents stood at $162 million as on Dec. 30, 2016, down 20.98 percent or $43 million from $205 million on Jan. 01, 2016.
Working capital turns negative
Working capital of CSRA Inc. has turned negative to $9 million on Dec. 30, 2016 from positive $123.53 million on Jan. 01, 2016. Current ratio was at 0.99 as on Dec. 30, 2016, down from 1.13 on Jan. 01, 2016.
Days sales outstanding went down to 45 days for the quarter compared with 53 days for the same period last year.
At the same time, days payable outstanding went up to 17 days for the quarter from 16 for the same period last year.
Debt comes down
CSRA Inc. has recorded a decline in total debt over the last one year. It stood at $2,799 million as on Dec. 30, 2016, down 9.47 percent or $292.70 million from $3,091.70 million on Jan. 01, 2016. Total debt was 57.29 percent of total assets as on Dec. 30, 2016, compared with 62.62 percent on Jan. 01, 2016. Debt to equity ratio was at 8.48 as on Dec. 30, 2016, down from 13.55 as on Jan. 01, 2016.
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