Cognizant Earns $1.06 per Share

This morning, Cognizant Technology (CTSH) reported fiscal Q1 earnings of $1.06 per share. They had been expecting at least $1.04 per share. Q1 was up from 84 cents per share one year ago. Quarterly revenue rose 18.4% to $3.91 billion. Their operating margin was just over 20%, which is nice to see.

“We achieved solid financial results in the first quarter and progressed our shift to digital services and solutions,” said Francisco D’Souza, Chief Executive Officer. “Cognizant has built the capabilities and scale to help clients digitize their offerings, create personalized customer experiences, instrument their operations, and modernize their IT infrastructure. This digital-at-scale value proposition is winning with clients and positioning us well to deliver a strong 2018.”

Now for guidance. Cognizant expects Q2 earnings of at least $1.09 per share and revenues between $4 and $4.04 billion. Wall Street had been expecting $1.12 per share. Cognizant is lowering its full-year forecast. Originally it was for earnings of at least $4.53 per share. Now they expect at least $4.47 per share.

“First quarter results demonstrate solid execution of our plan to drive sustainable revenue growth while increasing margins,” said Karen McLoughlin, Chief Financial Officer. “Our full year 2018 non-GAAP diluted EPS guidance reflects a higher than originally anticipated effective income tax rate due to the updated interpretation of the U.S. Tax Cuts and Jobs Act of 2017. Our strong balance sheet and cash flows continue to support both our capital return program and our investments in the business to drive future growth and continue our shift to digital services and solutions.”

Posted by on May 7th, 2018 at 7:43 am


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