Cognizant Technology Solutions Corp. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cognizant Technology Solutions Corp. (NASDAQ:CTSH) will unveil its latest earnings on Monday, May 7, 2012. Cognizant Technology Solutions provides custom IT consulting and technology services as well as outsourcing services for companies in North America, Europe, and Asia.

Cognizant Technology Solutions Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 79 cents per share, a rise of 17.9% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 21.1% versus last year to $3.45.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of 78 cents per share against a mean estimate of profit of 77 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.71 billion in revenue this quarter, a rise of 24.8% from the year-ago quarter. Analysts are forecasting total revenue of $7.54 billion for the year, a rise of 23.2% from last year’s revenue of $6.12 billion.

Analyst Ratings: Analysts are high on the stock, with 19 analysts rating it as a buy, none rating it as a sell and two rating it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 16.5% to $240.1 million (78 cents a share) from $206.2 million (66 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 26.9% to $1.66 billion from $1.31 billion.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 33.9% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 20.8% in the second quarter of the last fiscal year and 11.5% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

Stock Price Performance: Between April 2, 2012 and May 1, 2012, the stock price dropped $3.63 (-4.7%), from $77.01 to $73.38. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011, when shares rose for nine straight days, increasing 9.1% (+$6.48) over that span. It saw one of its worst periods between February 3, 2012 and February 10, 2012 when shares fell for six straight days, dropping 4.5% (-$3.27) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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