Investors Buy These Tech Stocks After Earnings Reports
Computer Sciences Corporation (NYSE:CSC) dropped to a third quarter loss, but results topped expectations. Reported a loss of $1.39 billion ($8.96 per diluted share) in the quarter. The information technology services company had net income of $242 million or $1.54 per share in the year earlier quarter. Revenue fell 5.8% to $3.76 billion from the year earlier quarter. Computer Sciences Corporation reported adjusted net income of $1.35 per share. By that measure, the company beat the mean estimate of 57 cents per share. It fell short of the average revenue estimate of $3.98 billion.
“I am encouraged by our continued success in capturing new business, our strong cash generation, and the sequential improvement in MSS operating margin,” said Michael W. Laphen, CSC Chairman, President and Chief Executive Officer. “Notwithstanding the NHS charge, discussions continue toward defining a program scope and a market potential that builds upon our accomplishments to date.”
Competitors to Watch: Intl. Business Machines Corp. (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ), SAVVIS, Inc. (NASDAQ:SVVS), Cognizant Tech. Solutions Corp. (NASDAQ:CTSH), TeleTech Holdings, Inc. (NASDAQ:TTEC), WidePoint Corporation (AMEX:WYY), Syntel, Inc. (NASDAQ:SYNT), Rackspace Hosting, Inc. (NYSE:RAX), Unisys Corporation (NYSE:UIS), and Zanett, Inc. (NASDAQ:ZANE).
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) reported net income above Wall Street’s expectations for the fourth quarter. Net income for the business software and services company rose to $240.1 million (78 cents per share) vs. $206.2 million (66 cents per share) in the same quarter a year earlier. This marks a rise of 16.5% from the year earlier quarter. Revenue rose 26.7% to $1.66 billion from the year earlier quarter. Cognizant Technology Solutions Corporation reported adjusted net income of 84 cents per share. By that measure, the company beat the mean estimate of 77 cents per share. Analysts were expecting revenue of $1.67 billion.
“We are very pleased, once again, to deliver industry leading revenue growth in 2011 while maintaining stable margins and investing for our long-term success,” said Francisco D’Souza, CEO of Cognizant. “As a result of strong client relationships and continued investments in people, knowledge and technology, we believe that Cognizant remains uniquely positioned to help clients take advantage of the volatility in the marketplace and accomplish the dual mandates of driving costs and efficiencies in their core operations while transforming their businesses to fuel top-line growth. With business challenges driven by globalization, regulatory changes, virtualization and consolidation and a confluence of new technology architectures such as mobile, social, cloud and big data, clients are increasingly looking to a partner like Cognizant that can create new levels of business value.”
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).
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