Cognizant Tech Earns 87 Cents per Share

Cognizant Technology Solutions (CTSH) just reported Q2 earnings of 87 cents per share. That’s five cents more than expectations. Revenues rose 9.2% to $3.37 billion which matched consensus.

“Our second quarter performance, as anticipated, represented broad-based revenue growth across service lines, geographies and industries, including healthcare and financial services,” said Francisco D’Souza, Chief Executive Officer. “While our revised guidance reflects the impact of near-term macroeconomic headwinds, our longer term outlook and underlying business fundamentals remain strong. We continue to see an expanding market opportunity ahead and are well positioned to capitalize on the digital transformations taking place among enterprises around the world.”

“The shift to digital continues to intensify and accelerate,” said Gordon Coburn, President. “Our strong second quarter revenue growth, adding incremental quarterly revenue of nearly $170 million, is the result of clients turning to Cognizant to help them define strategy and infuse new technologies to address key challenges and implement new business models. Our robust strategy and implementation capabilities have made us a key partner to clients as they fundamentally transform their businesses and navigate the shift to the digital economy.”

CTSH’s guidance was a little on the light side. Cognizant sees Q3 coming in between 82 and 85 cents per share. The Street had been expecting 86 cents per share. But they reiterated their full-year guidance range of $3.32 to $3.44 per share.

For revenue, CTSH sees Q3 between $3.43 billion and $3.47 billion. Wall Street had been expecting $3.54 billion. CTSH lowered their full-year guidance range for revenue from $13.65 billion – $14.0 billion to $13.47 billion – $13.60 billion. Wall Street had been expecting $13.75 billion.

Cognizant also added $1 billion to their stock repurchase plan.

Posted by on August 5th, 2016 at 8:21 am


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