With Wall Street apparently convinced Computer Sciences Corp.’s cost cutting measures will pay off, the company’s stock was up nearly 3 percent Wednesday, a day after releasing lackluster earnings.

CSC reported third quarter net income of $114 million (65 cents per share), a 44 percent drop from $203 million ($1.08) for the same period a year earlier. Analysts polled by Thomson Financial expected 83 cents per share.

Revenues for the El Segundo-based computer services company rose 1.7 percent to $3.64 billion.

The company reported $42 million, or 20 cents per share, in charges for jobs cuts, which are mainly in Europe, as it continues to cut costs. The company also had employee stock option expenses of 4 cents per share and 3 cents per share related to of costs from an internal investigation into past stock option granting practices.

Shares in CSC were up $1.57 to $54.81 in midday trading.