Cognizant Technology Solutions Corp. Quarterly Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cognizant Technology Solutions Corp. (NASDAQ:CTSH) will unveil its latest earnings on Tuesday, August 2, 2011. 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 Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 66 cents per share, a rise of 17.9% 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 and it has not changed during the last month. For the year, analysts are projecting profit of $2.76 per share, a rise of 16.5% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting net income of 67 cents per share against a mean estimate of profit of 64 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.46 billion in revenue this quarter, a rise of 31.5% from the year ago quarter. Analysts are forecasting total revenue of $5.97 billion for the year, a rise of 30.1% from last year’s revenue of $4.59 billion.

Analyst Ratings: Analysts are bullish on this stock with 19 analysts rating it as a buy, none rating it as a sell and three rating it as a hold.

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 43.2%, 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 first quarter, net income rose 37.5% while it rose 43.2% in the fourth quarter of the last fiscal year and 49.2% in the third quarter of the last fiscal year.

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 Price Performance: During May 2, 2011 to July 27, 2011, the stock price had fallen $12.33 (-15%) from $82.21 to $69.88. 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. Shares are down $3.41 (-4.7%) year to date.

(Source: Xignite Financials)

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