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
Wed, Aug. 5, 6:17 AM
Tue, Aug. 4, 5:30 PM
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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
Mon, May 4, 7:08 AM
- Cognizant (NASDAQ:CTSH) expects Q2 revenue of at least $3.01B and EPS of at least $0.72 vs. a consensus of $3.01B and $0.73. FY15 revenue of at least $12.24B (+19.3% Y/Y) and EPS of at least $2.93 vs. a consensus of $12.29B and $2.95.
- Gross margin was 40.7%, down marginally Y/Y. SG&A spend rose 26% to $611M, and operating margin fell to 19.8% from 20.8%.
- Q1 segment performance: Financial services revenue +13.4% (Y/Y) to $1.16B; healthcare +42.7% to $879.1M; manufacturing/retail/logistics +7.2% to $548.9M; other segments +19% to $322.3M.
- Q1 regional performance: North America +24.8% (Y/Y) to $2.29B; U.K. +2.7% to $285.1M; rest of Europe -0.9% to $190.8M; rest of world +23.7% to $143.5M.
- Q1 results, PR
Mon, May 4, 6:01 AM
Sun, May 3, 5:30 PM
Wed, Feb. 4, 10:05 AM
- Cognizant (NASDAQ:CTSH) expects Q1 revenue of at least $2.88B and EPS of at least $0.69 vs. a consensus of $2.88B and $0.70. Full-year guidance is for revenue of at least $12.21B and EPS of at least $2.91 vs. a consensus of $12.31B and $2.99. Given many other enterprise IT companies have also provided soft guidance due to forex pressures, the numbers are being taken in stride.
- Q4 revenue would've been up 13% Y/Y (rather than a reported 16.4%) if not for the TriZetto acquisition. As one would expect, the dollar's gains against the pound and euro took a toll - the U.K. was 10.2% of Q4 revenue, and the rest of Europe 7.2%. North America was 77.8%, and all other markets 4.9%.
- Segment performance: Financial services revenue (40.9% of total) +12.4% Y/Y to $1.12B. Healthcare (28.2% of total, boosted by TriZetto) +26% to $773M. Manufacturing/retail/logistics (19.5% of total) +9% to $534M. Everything else (11.5% of total) +23.3% to $314M.
- Gross margin was 40.2%, up fractionally Y/Y. Thanks in part to TriZetto, SG&A spend rose 25% to $562.6M, and op. margin fell to 19.4% from 20.7%.
- Shares have rallied to new 52-week highs.
- Q4 results, PR
Wed, Feb. 4, 6:02 AM
Tue, Feb. 3, 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
Nov. 5, 2014, 8:20 AM
- Cognizant (NASDAQ:CTSH) expects Q4 revenue of $2.61B-$2.64B and EPS of at least $0.63; that's better than a consensus of $2.58B and $0.59.
- Gross margin fell 90 bps Y/Y in Q3 to 39.2%, and GAAP SG&A spend rose 14% to $506M. Op. margin fell 90 bps to 19.5%, but was within a 19%-20% target range.
- Q3 segment performance: Financial services revenue +13.4% to $1.08B; healthcare +9.2% to $655.4M; manufacturing/retail/logistics +8.6% to $533M; other segments +19% to $310.3M.
- Q3 regional performance: North America +11.1% to $1.98B; U.K. +12.4% to $277M; rest of Europe +16% to $195.1M; rest of world +18.2% to $127.7M.
- Q3 results, PR
Nov. 5, 2014, 6:01 AM
Nov. 4, 2014, 5:30 PM
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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
Aug. 6, 2014, 6:01 AM
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