With Decent Infosys FYQ4, Indian Outsourcing Stocks Look Higher

Indian IT outsourcing stocks are looking higher this morning after an in-line earnings report from Infosys (INFY) for its fiscal fourth quarter ended March.

For the quarter, Infosys reported revenue of $1.14 billion and EPS of 55 cents; the Street had expected $1.14 billion and 54 cents.

For the June quarter, the company sees revenue of $1.142 billion to $1.145 billion, with EPS of 52 cents; the Street consensus was $1.18 billion and 52 cents. For the March 2009 fiscal year, Infosys sees revenue of $4.97 billion to $5.05 billion, and profits of $2.31 to $2.35 a share; the Street has been looking for $5.23 billion and $2.36.

The company said it made 5,947 gross new hires in the quarter, for net growth in its workforce of 2,586, to a total of 91,187.

Infosys also declared a special dividend of 50 cents a share, and said that in the future it will increase its pay-out ratio to up to 30% of net profits, from 20% of net profits previously.

While the report didn’t provide a big upside surprise, the Street apparently liked what it saw given recent concerns about economic weakness. In early trading, Infosys shares are up $1.88, or 5.1%, to $38.44. Other IT outsourcers are higher as well, with Cognizant (CTSH) up $1.47, or 5.5%, at $28.44, Satyam (SAY) up $1.41, or 6.3% to $23.98 and Wipro (WIT) up 36 cents, or 3.2% to $11.50.

Comments

[manuvns]

infosys looks like a good long term bet in IT stocks