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IT outsourcing firm Cognizant (CTSH -14.8%) dives following its Q1 report. Though EPS beat...

IT outsourcing firm Cognizant (CTSH -14.8%) dives following its Q1 report. Though EPS beat estimates, Cognizant's guidance for both Q2 (revenue of $1.79B and EPS of $0.80 vs. consensus of $1.84B and EPS of $0.83) and the whole of 2012 (revenue of $7.34B and EPS of $3.36 vs. consensus of $7.54B and $3.45) was light. A $400M expansion of the company's stock buyback program isn't enough to mollify investors. Rival Infosys (INFY -1.8%) met a similar fate in April.
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  • User 393882
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    attrition is huge for cognizant in the US, across verticals and practices. Since salary paid is much lower compared to an Accenture or IBM there is significant attrition to top tier players, this will further hamper growth and the growth push would primarily come through offshore utilization
    9 May 2012, 09:52 PM Reply Like
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