Cognizant Soars on Earnings

One of my fundamental rules of investing is to not worry what happens to stocks after you sell them. Still, it’s hard to ignore “what could have been.”
Last year, Cognizant Technology Solutions (CTSH) was a huge winner for us on our Buy List. The stock was up 151%. for us.
I didn’t want to be greedy so I dropped it off this year’s Buy List.
Thanks to the blow-out earnings report, CTSH is up 10% today and over 34% for the year.

Cognizant Technology Solutions Corp. booked a 22 percent jump in net income Tuesday, benefiting from a surge of pent up demand.
The results, as well as Cognizant’s forecast for the rest of the year, topped Wall Street forecasts and sent the company’s shares up 12 percent ahead of regular trading.
Cognizant, which provides consulting and information technology outsourcing, earned $172.2 million, or 56 cents per share, in the three months ended June 30.
That’s up from $141.3 million, or 47 cents per share, a year ago and better than the 52 cents per share analysts expected, according to Thomson Reuters.
Revenue jumped 42 percent to $1.11 billion, beating the average forecast of $1.02 billion.
“Our clients are investing again in discretionary programs to foster growth and innovation,” CEO Francisco D’Souza said in a statement. “We saw particular strength in our financial services segment, which had previously been hard hit by the global credit crisis.”
The company’s forecast for the quarter ending in September was equally upbeat.
It expects earnings of at least 59 cents per share and revenue of $1.18 billion, while analysts were looking for 54 cents per share on $1.06 billion.
For the full year, Cognizant said earnings should come to at least $2.26 per share with revenue of at least $4.46 billion. The average forecast calls for $2.13 per share $4.14 billion.

Grrrrr.

Posted by on August 3rd, 2010 at 10:24 am


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