Cognizant Tech Earnings: Fifth Straight Quarters of Double-Digit Growth
S&P 500 (NYSE:SPY) component Cognizant Technology Solutions Corporation (NASDAQ:CTSH) reported its results for the third quarter. Cognizant Technology Solutions provides custom IT consulting and technology services as well as outsourcing services for companies in North America, Europe, and Asia.
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Cognizant Technology Solutions Corporation Earnings Cheat Sheet
Results: Net income for Cognizant Technology Solutions Corporation rose to $276.9 million (91 cents per share) vs. $227.1 million (73 cents per share) in the same quarter a year earlier. This marks a rise of 21.9% from the year-earlier quarter.
Revenue: Rose 18.2% to $1.89 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cognizant Technology Solutions Corporation beat the mean analyst estimate of 87 cents per share. It beat the average revenue estimate of $1.71 billion.
Quoting Management: “Cognizant’s strong results reaffirm the acceptance of our value proposition that helps clients address the dual mandate of driving efficiency and effectiveness in their core business while investing in innovation and business transformation for long-term growth,” said Francisco D’Souza, Chief Executive Officer. “Our consulting-led approach, intimate client relationships, deep domain knowledge and robust execution give us the confidence to deliver revenue growth of at least 20% in 2012.”
The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 24.5%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 31.6% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 21.1% and in the first quarter, the figure rose 17%.
The company has beaten estiamtes for two quarters in a row. In the second quarter, it topped expectations with net income of 82 cents versus a mean estimate of net income of 80 cents per share.
Looking Forward: The average estimate for the fourth quarter remains unchanged at 91 cents a share. The average estimate hasn’t changed from $3.38 per share for the fiscal year.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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