Cognizant Technology Solutions Earnings: Here’s Why Investors are Happy Now

Cognizant Technology Solutions Corp. (NASDAQ:CTSH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.90%.

Cognizant Technology Solutions Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 30.49% to $1.07 in the quarter versus EPS of $0.82 in the year-earlier quarter.

Revenue: Rose 20.38% to $2.16 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cognizant Technology Solutions Corp. reported adjusted EPS income of $1.07 per share. By that measure, the company beat the mean analyst estimate of $0.97. It beat the average revenue estimate of $2.13 billion.

Quoting Management: “As we celebrate the 15th anniversary of our public listing on the NASDAQ stock exchange, we are delighted to yet again deliver industry-leading revenue growth,” said Francisco D’Souza, Chief Executive Officer. “Our 15 year record of revenue and earnings growth is a testament to our long-term strategy of reinvesting in our business to stay relevant to our clients’ changing needs and to provide increasing value as we grow each of those trusted relationships. This reinvestment strategy continues to enable Cognizant to excel in our core services while simultaneously investing in multiple horizons of growth, thereby continuing to position us well for the future.”
“Economic pressures and long-term secular industry shifts have been driving fundamental changes in client demands,” said Gordon Coburn, President. “Clients are increasingly turning to Cognizant to address their dual mandate of running better, or enhancing performance in their current businesses, and running different, or helping improve the positioning of their businesses for future success. As a result of Cognizant’s ability to address this dual mandate from one integrated platform, we are seeing strong market demand for our services which is allowing us to increase our revenue guidance for the full year.”

Key Stats (on next page)…

Revenue increased 6.94% from $2.02 billion in the previous quarter. EPS increased 15.05% from $0.93 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.03 and has not changed. For the current year, the average estimate has moved up from a profit of $4 to a profit of $4.02 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]