Syntel Surging on Earnings Beat

Shares of Syntel

are seeing much strength during Thursday's trading session after the company announced quarterly results this morning, which thrilled investors. Syntel's revenue for the fourth quarter increased 19 percent to $172.4 million, compared to $144.9 million in the prior-year period, and increased three percent sequentially from $167.6 million in the third quarter of 2011. During the fourth quarter, Applications Outsourcing accounted for 75 percent of total revenue, with Knowledge Process Outsourcing (KPO) at 15 percent, e-Business contributing eight percent and TeamSourcing at two percent. The Company's gross margin was 42.1 percent in the fourth quarter, compared to 38.4 percent in the prior-year period and 39.8 percent in the third quarter of 2011. Selling, General and Administrative (SG&A) expenses were 11.4 percent of revenue in the fourth quarter, compared to 17.4 percent in the prior-year period and 21.9 percent in the previous quarter. Fourth quarter income from operations was 30.7 percent of revenue as compared to 20.9 percent in the prior-year period and 17.9 percent in the third quarter. Currently, shares of Syntel are trading up over 16.4%, at about $52.90 per share.