S&P 500 (NYSE:SPY) component Cognizant Technology Solutions Corporation (NASDAQ:CTSH) reported net income above Wall Street’s expectations for the first quarter. Cognizant Technology Solutions Corporation provides custom IT consulting and technology services as well as outsourcing services for companies in North America, Europe and Asia.
Cognizant Technology Solutions Earnings Cheat Sheet for the First Quarter
Results: Net income for Cognizant Technology Solutions Corporation rose to $208.3 million (67 cents/share) vs. $151.5 million (49 cents/share) in the same quarter a year earlier. A rise of 37.5% from the year earlier quarter.
Revenue: Rose 42.9% to $1.37 billion YoY.
Actual vs. Wall St. Expectations: CTSH reported adjusted net income of of 71 cents/share. By that measure, the company beat the mean estimate of 63 cents/share. Estimates ranged from 62 cents per share to 65 cents per share.
Quoting Management: “We are particularly pleased with our continued success in recruiting talent throughout the world to position Cognizant for continued industry-leading growth,” said Gordon Coburn, Chief Financial and Operating Officer. “Our strong financial model continues to provide the resources to drive our long-term competitive differentiation. We remain confident in our strategy of maintaining our non-GAAP operating margins within a targeted range of 19-20% while allowing for strong and consistent investment in new service and delivery capabilities as well as in the best global talent.”
Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 40.3%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 45.2% from the year earlier quarter.
The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 43.2% and in the third quarter of the last fiscal year, the figure rose 49.2%.
Competitors to Watch: Intl. Business Machines Corp. (NYSE:IBM), iGATE Corporation (NASDAQ:IGTE), Syntel, Inc. (NASDAQ:SYNT), Computer Sciences Corp. (NYSE:CSC), Infosys Tech. Ltd. (NASDAQ:INFY), Wipro Limited (NYSE:WIT), CIBER, Inc. (NYSE:CBR), Edgewater Technology Inc. (NASDAQ:EDGW), Virtusa Corporation (NASDAQ:VRTU), and Patni Computer Systems Ltd. (NYSE:PTI)
Stock Performance: Shares of CTSH are trading at $79.50 per share, down 3.3% from yesterday’s close.