Mon, Mar. 16, 11:09 AM
- Abid Alli Neemuchwala, formerly the business process services chief at Tata Consulting, has been hired by Wipro (WIT +1.8%) to fill the newly-created position of COO. He's based out of Dallas, TX.
- Wipro: "In his role, Abid will head the Service Lines of Global Infrastructure Services, Business Application Services, Business Process Services, and Advanced Technology Solutions. He will also head Business Operations; the geographies comprising Continental Europe, Africa, and LATAM; Strategic Engagements, Advisor Relationships as well as the Marketing function."
- The news comes less than two months after Wipro announced a CFO change.
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
Dec. 15, 2014, 5:37 PM
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
Jul. 24, 2014, 9:07 AM
Jul. 17, 2014, 7:11 PM
- Wipro (NYSE:WIT) has signed Master Services Agreements with Canadian business services firm ATCO to provide a "complete suite of IT [outsourcing] services" to ATCO's Canadian and Australian ops.
- As part of the deal, Wipro is buying ATCO's I-Tek IT services unit for C$210M ($195M) in cash.
- Wipro expects the deal is expected to be produce revenue of more than C$120M ($112M) annually over the next 10 years, up to Dec. 2024. It comes ahead of the company's July 24 FQ1 report.
May. 23, 2014, 2:43 PM
- With shares remaining below $12 following a post-earnings April selloff, Barclays has upgraded Wipro (WIT +2.6%) to Equal Weight.
- Though Wipro beat Q1 estimates last month, disappointment with guidance for Q2 IT services revenue of $1.715B-$1.755B led shares to fall. They've underperformed Indian peers that have been rallying on election-related hopes.
Apr. 17, 2014, 9:08 AM
Apr. 17, 2014, 12:05 AM
Apr. 16, 2014, 5:30 PM
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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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