Cognizant Technology Solutions Corp. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cognizant Technology Solutions Corp. (NASDAQ:CTSH) will unveil its latest earnings on Wednesday, February 8, 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 estimate of analysts is for profit of 77 cents per share, a rise of 16.7% from the company’s actual earnings for the same quarter a year ago. 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 19.8% versus last year to $2.84.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 73 cents per share against a mean estimate of profit of 71 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 27.5% in revenue from the year-earlier quarter to $1.67 billion.

Analyst Ratings: Analysts are bullish on this stock with 20 analysts rating it as a buy, none rating it as a sell and two rating it as a hold.

A Look Back: In the third quarter, profit rose 11.5% to $227.1 million (73 cents a share) from $203.7 million (66 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 31.6% to $1.6 billion from $1.22 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 38.5%, 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 seen net income rise in three straight quarters. Net income rose 20.8% in the second quarter and 37.5% in the first quarter.

Stock Price Performance: During January 4, 2012 to February 2, 2012, the stock price had risen $6.65 (10.1%) from $65.96 to $72.61. 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, rising 9.1% (+$6.48) over that span. It saw one of its worst periods between June 9, 2011 and June 16, 2011 when shares fell for six-straight days, falling 10.9% (-$8.05) over that span.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com