Strong Earnings from Cognizant

Before the bell, Cognizant Technology Solutions (CTSH) reported Q4 earnings of 67 cents per share. That beat consensus by two cents per share. Revenues jumped 16.4% to $2.74 billion.

Cognizant has been expanding its health-care market offerings to take advantage of an industrywide overhaul that its customers are dealing with. Last year, Cognizant agreed to buy TriZetto Corp. from Apax Partners for $2.7 billion in an all-cash deal to expand in health-care industry software — its biggest acquisition.

Health-care companies “have to be more flexible and nimble because of this consumerism,” Gordon Coburn, president of Cognizant, said in an interview at the Nasdaq in New York. “In addition to the traditional services that we have always offered, we will build and maintain your system for you.”

Cognizant also said they see Q1 earnings of at least 69 cents per share. That was a penny below consensus (note they said “at least”). They see Q1 revenues of at least $2.88 billion which was just above consensus of $2.86 billion.

For all of 2015, Cognizant projects earnings of at least $2.91 per share. That’s five cents below consensus. They see revenues of at least $12.21 billion which was higher than consensus of $12.16 billion.

The stock has been up as much as 8.2%. CTSH hit a new 52-week high of $59.64 per share.

Posted by on February 4th, 2015 at 3:40 pm


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