CSC's (CSC) fiscal first-quarter profit climbed 5.6% as the information-technology company posted higher margins despite lower revenue and recorded a tax benefit.

Looking ahead, the company raised its per-share earnings target to $4.80 to $5 from $4.20 to $4.30 due to the reduction of its tax rate. It affirmed its revenue outlook.

CSC, which had been known as Computer Sciences Corp., changed its name last year as part of a five-year marketing and advertising campaign. Shares were up 1.8% at $49.50 in after-hours trading. The stock is up nearly one-third this year.

Chairman and Chief Executive Michael Laphen said the company anticipated "modest improvement in the economy," driving an increase in short-term projects in the second half of the year.

Recurring revenue from long-term contracts has helped CSC report solid earnings despite contraction in IT spending. In June, Standard & Poor's Ratings Service said CSC maintained a strong operating performance and good market position through its diverse business and geographic mix.

For the quarter ended July 3, CSC reported earnings of $133 million, or 85 cents a share, up from $126 million, or 79 cents a share, a year earlier. The latest period included an 11-cent tax benefit.

Revenue slid 12% to $3.9 billion, with half the drop due to currency changes.

Analysts polled by Thomson Reuters expected per-share earnings of 51 cents on revenue of $3.89 billion.

Operating margin improved to 6.8% from 6.4%.

The company received $3.51 billion in new awards during the quarter, down 35% from a year ago.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com