Cognizant Technology Solutions Earnings Preview: Analysts Expect Higher EPS, Revenue

Cognizant Technology Solutions (NASDAQ: CTSH) announces its next round of earnings this Wednesday, November 2, 2011. Here's Benzinga's advanced look at Cognizant Technology Solutions' third quarter earnings report.

Earnings and Revenue:

Analysts are looking ahead to a positive EPS of 71 cents/share and revenues of $1.57 billion. Cognizant Technology Solutions' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 66 cents/share on revenues of $1.22 billion. We'll have to wait for Wednesday to see if the company falls in line with analyst expectations and reports an estimated increase in both EPS and revenue from the year-ago quarter.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

At last check, shares of Cognizant Technology Solutions were trading at $76.57. Since January 1st, shares have given investors a return of 4.5%. For a full 12 months, the return has declined by 2.7%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts is a Moderate Buy. The strength of this rating has declined slightly over the past three months.

Competitors:

Wondering how some of the other information technology companies are doing? Here are a few of Cognizant Technology Solutions' peers in that sector.

• CIBER (NYSE: CBR): Strong Buy with a $0.00 recent quarter EPS
• Computer (NYSE: CSC): Hold with a $0.64 recent quarter EPS
• Edgewater Technology (NASDAQ: EDGW): Strong Buy with a $0.03 recent quarter EPS
• International Business Machines (NYSE: IBM): Moderate Buy with a $3.28 recent quarter EPS

Cognizant Technology Solutions is in the business software services industry, which has experienced price/earnings growth of 1.5%.

Finally, a description of the company's main areas of operation: Cognizant Technology Solutions provides custom IT consulting and technology services as well as outsourcing services for companies in North America, Europe, and Asia.

Take Action:

Now that you've gotten an advanced peak at Cognizant Technology Solutions' upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

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