Cognizant Reports Inline

The good news is that Cognizant Technology Solutions ($CTSH) reported very good earnings for their fourth quarter of $1.06 per share. That met expectations. The bad news is that Wall Street expected them to beat their expectations, which rather confuses what the definition of expectations is.

Revenues for Q4 rose 20.9% to $2.36 billion which again hit expectations on the nose. For Q1, CTSH sees earnings of $1.18 per share on revenue of $2.42 billion. Both numbers matched expectations. They earned 93 cents per share in last year’s Q1.

For all of 2014, CTSH forecasts earnings of at least $5.02 per share and revenues of at least $10.3 billion. This is where we have our “miss.” Wall Street had been expecting 2014 earnings of $5.08 per share on revenue of $10.39 billion. CTSH earned $4.38 per share last year compared with $3.74 in 2012.

The company also announced a 2-for-1 stock split that will take effect next month. The shares are down about 4.5% but I’m not at all concerned.

Posted by on February 5th, 2014 at 10:24 am


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