Cognizant Earns 71 Cents per Share

Good news this morning from Cognizant Technology Solutions (CTSH). The company earned 71 cents per share last quarter, one penny more than estimates. Their guidance was for EPS of at least 69 cents per share. (CTSH is a fan of using “at least” in their forecasts.) Revenue rose 20.2% to $2.91 billion. Guidance was for at least $2.88 billion.

“The clients we serve are experiencing tremendous change in their businesses and are increasingly turning to Cognizant to navigate that change,” said Francisco D’Souza, Chief Executive Officer of Cognizant. “The investments we have made in digital, automation, utility-based delivery models, consulting and industry-specific expertise are clearly paying off. Given how fast the landscape is changing, clients typically don’t have the skillsets to manage this transformation in-house and are turning to Cognizant to help them re-architect their core business and organizational models. As a result, we’re building deeper relationships with CEOs and boards, CIOs, and business and functional leaders to help them transform their businesses into digital enterprises.”

“The Cognizant approach of helping clients from setting strategy, to implementing and maintaining technology, to transforming and running business operations is enabling us to establish greater mindshare and market leadership,” said Gordon Coburn, President. “It’s evident across all geographies and industries that businesses are being forced to manage growth, innovation and scale while simultaneously managing costs. The shift to a digital enterprise is driving greater demand for our traditional services and solutions as clients find the need to keep pace with the speed and scale of innovation and maintain their competitive advantage.”

For Q2, the company sees earnings of at least 72 cents per share on revenue of at least $3.01 billion.

For the whole year, they see earnings of at least $2.93 per share. That’s an increase of two cents per share from their earlier guidance. They increased their revenue guidance from at least $12.21 billion to at least $12.24 billion.

Overall, this was a very good earnings report.

Posted by on May 4th, 2015 at 8:02 am


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