Infosys: Still a Drag

Infosys (INFY), which is the #2 software services provider in India, showed some promise in its latest quarterly results. Net profits increased 1.6% to $313 million, which was better than the consensus expectations. Yet, revenues fell 2.0% to $1.12 billion.

For the most part, Infosys gets much of its revenues outside of India – such as in the US and Europe. But, of course, the global recession is making it difficult to get traction. At the same time, there is intense competition from players like HP (HPQ), IBM and Accenture (ACN).

In fact, Infosys believes that the weakness will continue (at least for the short-run). The full-year forecast is for revenues of $4.45 - $4.52 billion, down 4.6% to 3.1%. Earnings are expected to range from $1.97-$2.00 per share (which would be a decline of 12.4% to 11.1%).