Fri, May 6, 9:26 AM
- Cognizant Technology Solutions (NASDAQ:CTSH) is off 2% premarket after Q1 earnings featured some light forward guidance along with a beat on profits.
- Overall revenues were up 10% but slipped 0.9% from Q4 as the company saw "softness in our healthcare segment due to M&A activity, as well as softness in our banking segment due to financial market volatility." Non-GAAP operating margin was 19.9%, on target.
- For Q2, the company's guiding to revenues of $3.34B-$3.4B (on the light side of consensus for $3.41B) and EPS of $0.80-$0.82 (vs. an expected $0.84). For fiscal 2016, it sees revenue of $13.65B-$14B (vs. $13.9B expected) and EPS of $3.32-$3.44, in line.
- Revenues by segment: Financial Services, $1.29B (up 10.7%); Healthcare, $914M (up 4%); Manufacturing/Retail/Logistics, $632.5M (up 15.2%); other, $369.7M (up 14.7%).
- By geography: North America, $2.497B (up 9%); UK, $298.8M (up 4.8%); Rest of Europe, $226.6M (up 18.8%); Rest of World, $179.3M (up 24.9%).
- Press Release
Fri, May 6, 6:01 AM
Thu, May 5, 5:30 PM
Mon, Feb. 8, 9:13 AM
- Though Cognizant (NASDAQ:CTSH) beat Q4 EPS estimates and posted nearly in-line revenue, the company is guiding for Q1 revenue of $3.18B-$3.24B and EPS of $0.78-$0.80, below a consensus of $3.32B and $0.81. 2016 guidance is for revenue of $13.65B-$14.2B and EPS of $3.32-$3.44 vs. a consensus of $14.12B and $3.47.
- No explanation for the guidance is given in the earnings release. IT outsourcing rival IBM and various other enterprise tech firms have issued weak guidance during earnings season against a backdrop of macro, forex, and cloud-related sales pressures.
- Q3 segment performance: Financial Services revenue (40.5% of total) +16.6% Y/Y to $1.31B. Healthcare +23.2% to $951.9M. Manufacturing/Retail/Logistics +14.3% to $610.5M. Other +15.3% to $362.4M.
- Geographic performance: North America revenue (78.9% of total) +18.7% to $2.36B. U.K. (hurt by forex) +9.8% to $305.9M. Rest of Europe (ditto) +9.6% to $215M. Rest of World +34% to $178.7M.
- Financials: Op. margin rose 20 bps Y/Y to 19.6%. $375M was spent on buybacks over the whole of 2015. Cognizant ended 2015 with $4.9B in cash and $1.3B in debt.
- Shares have dropped to $53.66 premarket.
- Cognizant's Q4 results, earnings release
Mon, Feb. 8, 6:04 AM
Sun, Feb. 7, 5:30 PM
Thu, Jan. 14, 1:12 PM
- Infosys (NYSE:INFY) has jumped to its highest levels since November after beating FQ3 revenue estimates (EPS was in-line) and raising its FY16 (ends March '16) dollar-based revenue growth guidance to 8.9%-9.3% from a prior 6.4%-8.4%, and above a 7.4% consensus. Credit Suisse has responded by upgrading to Outperform.
- IT outsourcing peers Cognizant (CTSH +5.3%), Accenture (ACN +2.6%), and Wipro (WIT +2.6%) have joined Infosys in outperforming. The Nasdaq is up 1.8%, and the S&P 1.6%.
- FQ3 details: Forex had a 4% impact on Infosys' FQ3 sales growth (8.5% vs. 12.5%). Gross margin fell to 37.2% from 38.7% a year ago. Operating expenses rose 11% Y/Y to $296M. Infosys ended FQ3 with $4.5B in cash, and no debt.
- CEO Vishal Sikka: "Alongside grassroots innovation, we continue to see growing adoption of our Aikido services, bringing the power of intelligent systems, automation and software to amplify the skills and imaginations of our people. This combination helped us deliver encouraging results despite the traditional seasonality of the quarter and the additional headwinds..."
- COO Pravin Rao: "The healthy volume growth this quarter has been encouraging. The lesser working days and our investments into additional trainees resulted in softer pricing and utilization for the quarter ... We continue to simplify our policies and enable greater agility within the company, with the goal of boosting our productivity."
- Infosys' FQ3 results, earnings release
Nov. 17, 2015, 10:58 AM
- Infosys (INFY -5.3%) is "definitely having a weak quarter three," says COO Pravin Rao. He adds the IT outsourcing giant's problems are more broad-based than usual, and that verticals such as financial services are seeing larger seasonal IT spending changes. FQ3 (calendar Q4) margins will be pressured by lower revenue growth and higher investments.
- Infosys is looking to offset top-line pressures by scoring more deals in the $1.5B-$2B range (compares with a current average size of $500M-$550M). Adoption of public cloud platforms such as Amazon Web Services and Microsoft Azure has been a headwind for IT services firms in general (see IBM's numbers).
- The remarks come a month after Infosys cut its FY16 (ends in March) revenue guidance, in spite of an FQ2 beat. Peer Cognizant (CTSH -1.9%) is off moderately.
Nov. 4, 2015, 11:59 AM
- Cognizant (CTSH -2.7%) is lower after slightly beating Q3 revenue estimates and posting in-line EPS. Q4 guidance is for revenue of at least $3.23B and EPS of at least $0.77 vs. a consensus of $3.23B and $0.77.
- Q3 segment performance: Financial services revenue (40.2% of total) +16.8% Y/Y to $3.7B. Healthcare (boosted by the TriZetto deal) +41.7% to $2.7B. Manufacturing/retail/logistics +11.2% to $1.73B. Other revenue +18.1% to $1B.
- Regional performance: North American revenue (78.7% of total) +25.8% to $7.27B (also boosted by the TriZetto deal). U.K. +7.6% to $883M. Rest of Europe (hurt by a weak euro) +2.8% to $605M. Rest of world +28.3% to $497M.
- Financials: $156M was spent on buybacks in Q3. Op. margin (non-GAAP) fell 10 bps to 19.4%. Cognizant ended Q3 with over $4B in cash, and $950M in debt.
- Q3 results, PR
Nov. 4, 2015, 6:11 AM
- Cognizant Technology (NASDAQ:CTSH): Q3 EPS of $0.76 in-line.
- Revenue of $3.19B (+23.6% Y/Y) beats by $30M.
Nov. 3, 2015, 5:30 PM
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Aug. 5, 2015, 9:39 AM
- With a Q2 beat on the books, Cognizant (NASDAQ:CTSH) now expects 2015 revenue of at least $12.33B and EPS of at least $3.00, above a consensus of $12.32B and $2.97. Q3 guidance is for revenue of at least $3.14B and EPS of at least $0.75 vs. a consensus of $3.13B and $0.75.
- Segment performance: Q2 Financial Services revenue (40.5% of total) +18.1% Y/Y to $1.25B. Healthcare (boosted by the TriZetto deal) +39% to $897.3M. Manufacturing/retail/logistics +12.4% to $578.3M. Other verticals +20.3% to $359.4M.
- Geographic performance: North America (78.6% of total, also boosted by TriZetto) +25.7% to $2.42B. U.K. +11.9% to $297.6M. Rest of Europe (hurt by weak euro) +2.2% to $204.7M. Rest of World +30% to $158.9M.
- Financials: Op. margin was 20.2%, down 80 bps Y/Y but slightly above Cognizant's 19%-20% target range. $153M was spent on buybacks. Cognizant ended Q2 with $3.54B in cash, and $1.06B in debt.
- Cognizant has made new highs. IT outsourcing peers Infosys (INFY +2.4%) and Wipro (WIT +2.3%) are also doing well.
- Q2 results, PR
Aug. 5, 2015, 6:17 AM
- Cognizant Technology (NASDAQ:CTSH): Q2 EPS of $0.79 beats by $0.06.
- Revenue of $3.09B (+22.6% Y/Y) beats by $60M.
Aug. 4, 2015, 5:30 PM
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Jul. 21, 2015, 10:08 AM
- Infosys (NYSE:INFY) is at its highest levels since April after beating FQ1 revenue estimates (while posting in-line EPS) and guiding for FY16 (ends March '16) revenue growth of 7.2%-9.2% (above a 6.5% consensus).
- Also going over well: Client adds rose to 79 from 61 a year ago, and the utilization rate rose 160 bps to 80.2%.
- An 11% Y/Y increase in operating expenses to $281M pressured EPS, as did a 50 bps Y/Y drop in gross margin to 36.4%. Infosys ended FQ1 with $4.75B in cash/investments, and no debt.
- IT outsourcing peers Cognizant (CTSH +2%) and Wipro (WIT +2.8%) are also higher. Wipro reports on July 23, and Cognizant on August 5.
- Infosys' FQ1 results, PR
Cognizant Technology Solutions Corp. is a provider of information technology, consulting and business process outsourcing services. Its core competencies include Business, Process, Operations and IT Consulting, Application Development and Systems Integration, Enterprise Information Management,... More
Industry: Business Software & Services
Country: United States
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