Cognizant Beats and Guides Higher

The S&P 500 has now risen for 11 of the last 13 days. We had more good news this morning as Cognizant Technology Solutions ($CTSH) reported impressive results. For Q1, CTSH earned $1.02 per share which was eight cents better than estimates. Going into the earnings report, I think some traders were expecting a big miss after seeing what happened to CTSH’s competitors. Revenues rose 18.1% to $2.02 billion which was just ahead of estimates.

Cognizant’s guidance was also good. For Q2, they see earnings at $1.06 per share which is seven cents above Wall Street, and they expect quarterly revenues of $2.13 billion which is $20 million above consensus.

For all of 2013, CTSH expects earnings of $4.31 per share which is well above consensus of $4.05 per share. For revenue, they expect $8.60 billion which just below the Street’s forecast of $8.63 billion. The company is also expanding its stock buyback program.

The stock gapped up to $68 right after the opening, then pulled back, and is climbing again. CTSH is currently up 3.8% today.

Posted by on May 8th, 2013 at 10:02 am


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