Computer Sciences Corp.'s (CSC) fiscal fourth-quarter profit more than doubled on tax-audit settlements as the information-technology company reported weaker revenue because of the stronger dollar.

"Our commercial business appears to have stabilized at the levels achieved in the fourth quarter," said Chairman and Chief Executive Michael Laphen.

Shares were up 4.5% to $38.81 in after-hours trading as earnings excluding items topped expectations. The stock has been rebounding from its 14-year low of $23.93 in November.

IT providers have a steady stream of recurring revenue from long-term contracts, which help mitigate the effects of the recession on profits. CSC has shown strength in its contract signing and solid pricing, according to Fitch Ratings, which affirmed its BBB+ investment-grade credit ratings on the company last week.

For the quarter ended April 3, CSC reported a profit of $382.3 million, or $2.51 a share, up from $181.7 million, or $1.15 a share, a year earlier. The latest period had a net 99-cent gain while the prior year had 29 cents in restructuring costs.

Revenue fell 8.3% to $4.11 billion, but would have risen 0.4% in constant currencies.

Analysts polled by Thomson Reuters expected per-share earnings of $1.47 on revenue of $4.2 billion.

Operating margin rose to 10.9% from 10%.

The company received nearly $3.47 billion in new awards during the quarter, with the fiscal-year total up 4%.

Looking ahead, CSC expects 2010 fiscal year per-share earnings of $4.20 to $4.30 on revenue of $16 billion to $16.5 billion, while Wall Street expected per-share earnings of $4.08 on revenue of $16.4 billion.

-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com