Seeking Alpha

Syntel, Inc. (SYNT)

  • Thu, Aug. 20, 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.
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  • Wed, Jul. 8, 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.
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  • Apr. 12, 2013, 8:12 AM
    Tech outsourcing stocks are on watch after a stark revenue warning from Infosys rattles the sector. Cognizant Technology Solutions (CTSH) is down 4.8% premarket, while iGATE (IGTE) and Syntel (SYNT) haven't opened up yet for trading.
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  • 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?
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  • Feb. 16, 2012, 2:36 PM
    IT 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.
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  • 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.
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Company Description
Syntel Inc along with its subsidiaries is engaged in providing digital transformation, information technology, and knowledge process outsourcing services. Its services include programming, systems integration, outsourcing and overall project management.