Aug. 20, 2015, 2:12 PM
- On a bleak day for equities, Syntel (NASDAQ:SYNT) is staying green thanks to an upgrade to Outperform from Baird's David Koning.
- Koning, whose target remains at $54, notes Syntel is the only IT/BPO services firm covered by Baird to have underperformed the S&P to date, and states Q2 trends appear better than Q1's. He also thinks 2015 EPS estimates will rise if the rupee remains weak.
- JPMorgan downgraded Syntel in early July, citing the impact of healthcare M&A. The company posted a Q2 EPS beat on July 23, but also cut the top ends of its full-year revenue and EPS guidance ranges by $10M and $0.10.
Jul. 8, 2015, 2:55 PM
- Believing healthcare M&A strengthens its belief estimates are too high, JPMorgan has downgraded Syntel (NASDAQ:SYNT) to Underweight, and cut its target by $2 to $48.
- The firm notes Humana (set to be acquired by Aetna) is a major Syntel client, and thinks the deal could lead discretionary projects to be delayed. It adds 2015 sales guidance implies 7.5%-9.5% Q/Q growth for the rest of the year, compared with average growth of 4.8% over the last 4 years, and that recent news flow about Q2 layoffs could be a sign of weak near-term demand.
- The IT services provider now trades for 14x a 2016 EPS consensus of $3.11.
Apr. 12, 2013, 8:12 AM
Apr. 13, 2012, 10:09 AM
Infosys (INFY -13.5%) is plunging after delivering a weak FQ4 report, and is taking other IT outsourcing names down with it: WIT -3.7%. CTSH -2.8%. SYNT -2%. ACN -1.5%. HPQ -2%. Also hurting is Infosys' guidance for FY13 revenue of $7.55B-$7.69B and EPS of $3.12-$3.17 (consensus is for $7.96B and $3.25). "The year ahead looks challenging for the IT services industry," says the company's CEO. Are cloud services part of the problem?| Apr. 13, 2012, 10:09 AM
Feb. 16, 2012, 2:36 PMIT outsourcing firm Syntel (SYNT +17.9%) takes off after delivering a strong Q4 beat, which is going over well with investors put on edge by soft guidance (I, II) from rivals INFY and CTSH. A 230 bps Q/Q gross margin increase helped boost earnings. For 2012, Syntel says it expects revenue of $720M-$750M and EPS of $3.10-$3.35, which compares with a consensus of $735M and $3.31. | Feb. 16, 2012, 2:36 PM
Oct. 17, 2011, 1:31 PM
Syntel (SYNT -2.9%) trades lower after releasing its preliminary Q3 and FY11 sales numbers. Despite beating current estimates, it says FY11 EPS will come in below expectations due to a one-time, non-recurring charge to earnings to resolve arbitration claims with a former client.| Oct. 17, 2011, 1:31 PM