Cognizant Technology Solutions Corp. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cognizant Technology Solutions Corp. (NASDAQ:CTSH) will unveil its latest earnings on Wednesday, November 2, 2011. 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 71 cents per share, a rise of 7.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 70 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 71 cents during the last month. Analysts are projecting profit to rise by 17.7% versus last year to $2.79.

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 67 cents per share against a mean estimate of profit of 66 cents per share.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Wall St. Revenue Expectations: Analysts are projecting a rise of 28.7% in revenue from the year-earlier quarter to $1.57 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 second quarter, profit rose 20.8% to $208 million (67 cents a share) from $172.2 million (56 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 34.4% to $1.49 billion from $1.11 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 41.3%, 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 seen net income rise in three straight quarters. Net income rose 37.5% in the first quarter and 43.2% in the fourth 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 August 31, 2011 to October 27, 2011, the stock price had risen $13.12 (20.7%) from $63.45 to $76.57. 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 up $3.28 (+4.5%) year to date.

(Source: Xignite Financials)

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.