Wed, Oct. 21, 8:33 AM
Tue, Oct. 20, 5:30 PM
Mon, Oct. 12, 1:23 PM
- Though Infosys (NYSE:INFY) beat FQ1 revenue estimates (while posting in-line EPS) and reiterated FY16 (ends March '16) constant currency revenue growth guidance of 10%-12%, a strong dollar has led dollar-based revenue growth guidance to be cut to 6.4%-8.4% from 7.2%-9.2%.
- Also: The IT outsourcing giant has disclosed CFO Rajiv Bansal plans to resign. M.D. Ranganath, currently Infosys' head of strategic operations, will replace him.
- Forex had a 5.5% impact on FQ1 sales growth. COO Pravin Rao states "softness" is expected in financial services, aviation, energy, and mining demand. CEO Vishal Sikka notes industry pricing pressure is expected to continue, but does his best to stay upbeat. “Traditionally, the second half has given us dips in growth We are going to work very hard to make sure that we buck it this time. We have been foreseeing that all year.”
- Financials: Gross margin fell to 37.8% from 38.5% a year ago. Operating expenses rose 8% to $294M. Infosys ended FQ1 with $4.6B in cash, and no debt.
- Peer Wipro (NYSE:WIT), which reports on Oct. 21, is following Infosys lower.
- Infosys' FQ1 results, PR (.pdf)
Wed, Aug. 5, 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
Thu, Jul. 23, 9:25 AM
Tue, Jul. 21, 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
Tue, Apr. 21, 8:20 AM
Mon, Apr. 20, 5:30 PM
Fri, Jan. 16, 11:24 AM
- Range-bound Wipro (NYSE:WIT) is up strongly after posting in-line FQ3 EPS to go with a slight revenue miss, and guiding for FQ4 IT services revenue of $1.814B-$1.850B. Consensus for total FQ4 revenue is at $1.98B.
- The IT outsourcing giant has also announced CFO Suresh Senapaty will retire on March 31. Finance SVP Jatin Dalal will succeed him.
- IT services revenue totaled $1.795B in FQ3, up 7% Y/Y but slightly missing guidance of $1.808B-$1.842B. IT products revenue totaled $123M. 44 new IT Services customers were added vs. 50 in FQ2.
- FQ3 results, PR (.pdf)
Fri, Jan. 16, 8:21 AM
Thu, Jan. 15, 5:30 PM
Dec. 18, 2014, 1:14 PM
- In addition to beating FQ1 estimates, Accenture (ACN +4.3%) has hiked its guidance for FY15 (ends Aug. '15) local currency revenue growth to 5%-8% from 4%-7%. On the other hand, forex is now expected to have 500 bps impact on revenue, up from a prior 200 bps.
- As a result, FY15 EPS guidance has been lowered to $4.66-$4.80 from $4.74-$4.88 - consensus is at $4.81 - and FQ2 revenue guidance of $7.25B-$7.5B is mostly below a $7.46B consensus. The market appears to have discounted forex pressures in advance.
- FQ1 new bookings totaled $7.7B, down from $8.7B a year ago. Consulting bookings fell to $3.9B from $4.3B, and outsourcing bookings to $3.8B from $4.4B.
- Gross margin fell 110 bps Y/Y to 32.2%, but cost controls helped SG&A spend fall to 17.1% of revenue from 18.7%. As a result, op. margin rose 20 bps to 15%. $670M was spent on buybacks.
- North America revenue +11% to $3.44B; Europe +5% to $2.91B; "Growth Markets" +3% to $1.55B. Forex respectively had 400 bps and 600 bps impacts on Europe and Growth Markets revenue growth.
- Accenture has made new highs. Outsourcing rivals Infosys (INFY +3%), Wipro (WIT +4.9%), and Cognizant (CTSH +4.3%) are also outperforming on a good day for equities.
- FQ1 results, PR
Oct. 22, 2014, 12:41 PM
- Wipro (WIT -3.2%) expects FQ3 IT services revenue (responsible for 94% of FQ2 revenue) of $1.808B-$1.842B. The company's total FQ3 revenue consensus is at $1.99B.
- IT services revenue growth slipped to 8.6% in FQ2 from 9.6% in FQ1. Wipro notes the benefits of a weak rupee were offset by the dollar's strength against other currencies.
- Gross margin fell 30 bps Y/Y to 30.8%. G&A spend rose 16% to $107M; sales/marketing spend was nearly flat at $123M.
- FQ2 results, PR (.pdf)
Oct. 22, 2014, 8:13 AM
Oct. 21, 2014, 5:30 PM
Aug. 6, 2014, 9:43 AM
- Though its Q2 revenue was in-line, Cognizant (NASDAQ:CTSH) expects Q3 revenue of $2.55B-$2.58B and EPS of $0.63+ vs. a consensus of $2.66B and $0.60. Full-year guidance is for 14%+ revenue growth and EPS of $2.54+ vs. a consensus for 16.9% growth and EPS of $2.38.
- The company blames its top-line softness on "weakness at certain clients and longer than anticipated sales cycles for certain large integrated deals." The IT outsourcing industry in general has been pressured by a growing customer preference for smaller deals, and (in certain segments) the adoption of cloud services.
- Gross margin fell 70 bps Y/Y to 40.4%, and SG&A spend rose 15% to $483M. Cognizant spent over $100M on buybacks, and has increased its buyback authorization by $500M; $900M remains available under the company's buyback program.
- Peers Infosys (INFY -4.2%), Wipro (WIT -2.5%), and Accenture (ACN -1.5%) are also trading lower. Infosys dropped last month after providing cautious remarks about near-term demand to go with an EPS beat.
- Q2 results, PR
Wipro Ltd is an IT services company. Its IT Services businesses provide IT & IT-enabled services which include IT consulting, custom application design, development, re-engineering & maintenance, systems integration, package implementation, & others.
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