Infosys Up Strongly on Impressive Earnings Growth

Includes: INFY, WIT
by: David Jackson

Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):
Infosys Net Jumps 50% on Increase in Orders

  • Summary: Indian outsourcing company Infosys reported strong Q2 results and raised guidance. Revenue rose 46% and net profit 50%. The company added 38 new clients, and said that demand from Europe is growing faster than from the US. Its raised its full year EPS forecast to a range of 124.71-125.74 rupees from the prior range of 113.85-115.1 rupees.
  • Comment on related stocks/ETFs: Infosys trades as an ADR in the US (NASDAQ:INFY); it was up 5% after the results were announced. Full details and discussion in the Infosys conference call transcript. Incrementally positive for competitor Wipro (NYSE:WIT), whose ADR opened yesterday at $12.89 but closed lower at $12.71.