Cognizant Technology Solutions Earnings: Here’s Why the Stock is Rising 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 5.06%.
Cognizant Technology Solutions Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 29.11% to $1.02 in the quarter versus EPS of $0.79 in the year-earlier quarter.
Revenue: Rose 18.08% to $2.02 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cognizant Technology Solutions Corp. reported adjusted EPS income of $1.02 per share. By that measure, the company beat the mean analyst estimate of $0.93. It beat the average revenue estimate of $2.01 billion.
Quoting Management: “Our performance during the first quarter was strong, and we are encouraged by the healthy demand for our broad range of services,” said Francisco D’Souza, Chief Executive Officer. “We continue to make solid progress developing emerging offerings in new markets, new SMAC technologies, and new non-linear solutions and services. I’m particularly pleased with the recent launch of our portfolio of Cognizant BusinessCloudSM solutions that enable clients to quickly deploy a range of business and best-in-class IT solutions and to forgo costly capital outlays and lengthy implementation timelines.”
Key Stats (on next page)…
Revenue increased 3.72% from $1.95 billion in the previous quarter. EPS increased 10.87% from $0.92 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 $0.97 and has not changed. For the current year, the average estimate is a profit of $4.00, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)