EDS Delays 3Q Earnings--AgainEDS Delays 3Q Earnings--Again

IT services company EDS has again delayed the release of its third-quarter earnings. The company was scheduled to report its results last week but issued a postponement until Nov 3. Now, EDS says it doesn't know when it can make the numbers public.

EDS says it's taking longer than expected to determine whether it needs to write off certain assets related to its multibillion-dollar contract to build an intranet for the Navy and Marine Corps. On Wednesday, it also revealed that auditor KPMG has recommended an internal audit of the company's quarterly bonus plan. Until that's done, EDS says, it won't be able to release third-quarter numbers.

EDS's delaying of its earnings report a second time is raising eyebrows on Wall Street. "I've never heard of a company doing that," says Greg Zwakman, a financial analyst at Tier 1 Research. The uncertainty around EDS's financial picture could cause potential customers to steer clear of the company. "The real problem is we don't know what's going on," Zwakman says.

Despite the confusion, EDS expects to meet the guidance it previously issued for the third quarter. The company is expecting earnings of 5 to 10 cents a share for the period and revenue of $4.9 billion to $5 billion.