Cognizant Technology Solutions Corp. (NASDAQ: CTSH) said on Wednesday that fiscal first quarter net income soared 17%, thanks to double digit revenue growth which was boosted by improved performance across all segments and markets.
The Teaneck, New Jersey-based company not only reported better-than-expected adjusted earnings and revenue but also provided upbeat guidance on the second quarter. The Company also reiterated its guidance for the fiscal 2013.
Commenting over the results, Company’s Chief Executive officer Francisco D’souza said to analysts in earnings call, “Our performance during the first quarter was strong, and we are encouraged by the healthy demand for our broad range of services. We continue to make solid progress developing emerging offerings in new markets, new SMAC technologies, and new non-linear solutions and services.”
For the fiscal first quarter, Cognizant reported a profit of $284.21 million or 93 cents a share compared to a net income of $243.65 million or 79 cents a share, in the same quarter of last year. Stripping out onetime items, adjusted earnings climbed to $1.02 a share up from 88 cents a share, reported in the same quarter of last fiscal.
Revenue for the period surged 18.1% to $2.02 billion from $1.71 billion, in the same quarter of last year. Analyst’ consensus estimate was for earnings of 93 cents a share on revenue of $2.01 billion.
Revenue, climbed 23.1% to $855 million in the financial services segment, rose 9.1% to $510 million in the healthcare segment while it soared 27.2% to $426 million in manufacturing/retail/logistics segment.
Revenue rose 16.3% to $1.58 billion in the North American region, it jumped 22.7% to $348 million in Europe and in rest of the world it climbed 35.4% to $90 million, from the year earlier quarter.
For the current quarter, the Company expects earnings to be in the range of $1.06 a share, assuming revenue of at least $2.13 billion. Analysts’ consensus estimate was for earnings of 97 cents a share on revenue of $2.11 billion.
Looking ahead at fiscal 2013, the Company maintained its earnings guidance of at least $4.31 a share on revenue of at least $8.60 billion, which is above analysts’ current forecast for earnings of $4 a share on revenue of $8.63 billion.
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