DXC Technology, Cloudera, Korn Ferry and more
Workers from Vivint Solar install solar panels on the roof of a home.
Anne Cusack | Los Angeles Times | Getty Images
Check out the companies making headlines after the bell.
DXC Technology — The technology service company saw its stock climb 37% in extended trading after the company announced that it is selling its U.S. state and local health and human services business to Veritas Capital for $5 billion in cash. The sale is expected to close no later than December 2020. “Throughout this process, we will continue to closely engage with all of our stakeholders to ensure that we meet our commitments and provide a seamless transition for our customers and our people,” DXC President and CEO Mike Salvino said in a statement.
Cloudera — The software company’s stock soared 11% in extended trading after the company beat analysts’ estimates on revenue in the fourth quarter. The company reported revenue of $211.6 million, while analysts polled by Refinitiv estimated $201.8 million. However, Cloudera reported a bigger loss than expected. The company said it had a loss of 22 cents per share excluding some items, while analysts had expected a loss of only 3 cents per share. For fiscal year 2021, Cloudera offered guidance that included earnings of 25 cents to 29 cents per share, while analysts estimated a loss of 1 cent per share. “We believe the opportunity for Cloudera has never been bigger,” CEO Rob Bearden said in a statement.
Vivint Solar — Shares of the solar energy company tumbled 8% in extended trading after the company reported a loss of 27 cents per share in the fourth quarter. Analysts polled by FactSet expected a wider loss of 33 cents per share. The company also missed analysts’ estimates on revenue. Vivint Solar reported revenue of $77.1 million, while analysts anticipated $88.2 million, according to FactSet.
Korn Ferry — The management consulting firm saw its stock dip 3% in extended trading after the company said the coronavirus “has clouded the near-term predictability of our business” in its third-quarter earnings release. Korn Ferry declined to provide specific guidance on earnings and revenue for the fourth quarter. However, the company posted a double beat on third-quarter earnings and revenue. Korn Ferry reported earnings of 75 cents per share excluding some items on revenue of $515.3 million, while analysts estimated earnings of 73 cents per share on revenue of $500.3 million, according to FactSet.
Western Union — The financial services company’s stock fell 4% after the closing bell. It was announced earlier today by the Federal Trade Commission that approximately $153 million in refunds is being mailed to 109,000 Western Union customers who were victims of fraud. The FTC alleged that for many years Western Union was aware that criminals were using its money system to defraud customers and that some Western Union agents were complicit in the fraud. The FTC also alleged that Western Union failed to have effective anti-fraud policies in place. The $153 million refund represents the first round of compensation in a $586 million settlement Western Union reached with the FTC, the U.S. Department of Justice and the U.S. Postal Inspection Service. “Western Union turned a blind eye to the fraudulent payments made through its money transfer system,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “We’re glad to be returning money to those consumers who were ripped off by fraudsters exploiting the Western Union system, and we will not tolerate Western Union or other payment companies facilitating fraud.”